The GEO Group, Inc.
Lead Plaintiff Deadline: 09/07/2020
SUMMARY OF CASE:
A securities class action has been filed against The GEO Group, Inc. (GEO ) on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired GEO Group securities between February 27, 2020 through June 16, 2020. This case has been filed in the USDC – S.D.FL.
The Complaint alleges that 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 reported 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 enforcing personal protective measures even as COVID-19 diagnoses at the facility increased.
On this news, GEO Group’s stock price fell $1.03 per share, or 7.8%, to close at $12.17 per share on June 17, 2020.