RADNOR, Pa., Aug. 24, 2016 /PRNewswire/ -- The law firm of
Kessler Topaz Meltzer & Check, LLP announces that a shareholder
class action lawsuit has been filed against Corrections Corporation
of America (NYSE: CXW) ("CCA" or the "Company") on behalf of
purchasers of the Company's securities between
February 27, 2012 and
August 17, 2016, inclusive
(the "Class Period").
Investors who purchased CCA securities
during the Class Period may seek to be appointed by the Court as a
lead plaintiff representative of the class. For additional
information please visit
https://www.ktmc.com/new-cases/corrections-corporation-of-america#join.
Shareholders who wish to discuss this action and their legal
options are encouraged to contact Kessler Topaz Meltzer &
Check, LLP (Darren J. Check, Esq.,
D. Seamus Kaskela, Esq. or
Adrienne O. Bell, Esq.) at (888) 299
– 7706 or at info@ktmc.com.
CCA, together with its subsidiaries, owns, operates, and manages
private prisons and other correctional facilities in the United States, and provides inmate
residential and prisoner transportation services for governmental
agencies.
The complaint alleges that CCA and certain of its executive
officers made a series of false and misleading statements and/or
failed to disclose to investors during the Class Period that: (i)
CCA's facilities lacked adequate safety and security standards and
were less efficient at offering correctional services than the
Federal Bureau of Prisons' ("BOP") facilities; (ii) CCA's
rehabilitative services for inmates were less effective than those
provided by BOP; (iii) consequently, the U.S. Department of Justice
("DOJ") was unlikely to renew and/or extend its contracts with CCA;
and (iv) as a result of the foregoing, CCA's public statements were
materially false and misleading at all relevant times.
As detailed in the complaint, on August
18, 2016, Deputy Attorney General Sally Yates announced the DOJ's decision to end
its use of private prisons, including those operated by CCA, after
officials concluded that the facilities are both less safe and less
effective at providing correctional services than those run by the
federal government.
Following this news, shares of the Company's stock declined
$9.65 per share, or over 35%, to
close on August 18, 2016 at
$17.57 per share, on unusually heavy
trading volume.
CCA shareholders may, no later than October 24, 2016, petition the Court to
be appointed as a lead plaintiff representative of the class
through Kessler Topaz Meltzer & Check or other counsel, or may
choose to do nothing and remain an absent class member. A
lead plaintiff is a representative party who acts on behalf of all
class members in directing the litigation. In order to be
appointed as a lead plaintiff, the Court must determine that the
class member's claim is typical of the claims of other class
members, and that the class member will adequately represent the
class in the action. Your ability to share in any recovery is
not affected by the decision of whether or not to serve as a lead
plaintiff. For additional information please visit
https://www.ktmc.com/new-cases/corrections-corporation-of-america#join.
Kessler Topaz Meltzer & Check prosecutes class actions in
state and federal courts throughout the country. Kessler
Topaz Meltzer & Check is a driving force behind corporate
governance reform, and has recovered billions of dollars on behalf
of institutional and individual investors from the United States and around the world.
The firm represents investors, consumers and whistleblowers
(private citizens who report fraudulent practices against the
government and share in the recovery of government dollars).
The complaint in this action was not filed by Kessler Topaz Meltzer
& Check. For more information about Kessler Topaz Meltzer
& Check, or for additional information about participating in
this action, please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299 - 7706
(610) 667 - 7706
info@ktmc.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/shareholder-class-action-filed-against-corrections-corporation-of-america--cxw-300317822.html
SOURCE Kessler Topaz Meltzer & Check, LLP