Federal Contractor Misconduct Database (FCMD)
Grae v. Corrections Corp. of America (Shareholder Class Action)
CoreCivic paid $56 million to settle an investor lawsuit alleging the company and its top executives misled shareholders about the quality, efficiency, and regulatory compliance of its facilities. The plaintiffs filed the lawsuit after then-Deputy Attorney General Sally Yates announced in August 2016 that the federal government would phase out its use of private prisons in response to a report that found private prisons incurred more safety and security incidents than government-run facilities. The plaintiffs alleged those events caused a major drop in the value of CoreCivic’s stock.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement Announcement