LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired The Geo Group, Inc. (“GEO Group” or the “Company”) (NYSE: GEO) securities between February 27, 2020 and June 16, 2020, inclusive (the “Class Period”). GEO Group investors have until September 8, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On June 17, 2020, The Intercept published an article entitled "GEO Group’s Blundering Response to the Pandemic Helped Spread Coronavirus in Halfway Houses." The article described details of a significant COVID-19 outbreak at the Grossman Center, a halfway house in Leavenworth, Kansas, operated by GEO Group—which "was for weeks the hardest hit federal halfway house in the country" in terms of confirmed cases of COVID-19. Citing interviews with residents of the Grossman Center, The Intercept characterized GEO Group’s response as "blundering" and reported "that the virus spread not in spite of the facility’s efforts to contain it, but because of it." According to the article, the Grossman Center continued to keep its residents in overcrowded conditions without implementing personal protective measures even as COVID-19 diagnoses at the facility increased.
On this news, the Company’s share price fell $1.03 per share, or 7%, to close at $12.17 per share on June 17, 2020, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that GEO Group maintained woefully ineffective COVID-19 response procedures; (2) that those inadequate procedures subjected residents of the Company’s halfway houses to significant health risks; (3) that accordingly, the Company was vulnerable to significant financial and/or reputational harm; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased GEO Group securities during the Class Period, you may move the Court no later than September 8, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased GEO Group securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.