LOS ANGELES–(BUSINESS WIRE) – Frank R. Cruz's law firms announce that a class action lawsuit has been filed on behalf of individuals and entities that have 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 submit a petition from the lead plaintiff.
If you are a shareholder who has suffered a loss, click here to participate.
On June 17, 2020, The Intercept published an article entitled "The GEO Group's erroneous response to the pandemic helped spread the corona virus in Halfway Houses." The article described details of a significant COVID-19 outbreak at the Grossman Center, an intermediate house in Leavenworth, Kansas operated by the GEO Group – "the most severely affected federal house in the country for weeks" in relation to confirmed cases of COVID-19 . Referring to interviews with residents of the Grossman Center, The Intercept described the GEO Group's response as "flawed" and reported that "the virus is not spreading despite the institution's efforts to contain it, but because of it". According to the article, the Grossman Center continued to keep its residents under crowded conditions without taking personal protective measures, even as the facility's COVID-19 diagnoses increased.
In the news, the company's share price fell $ 1.03 per share, or 7%, to close at $ 12.17 per share on June 17, 2020, injuring investors.
The complaint filed in this class action alleges that the defendants have made materially false and / or misleading statements throughout the class period and have not disclosed any material adverse facts about the business, operations, and prospects of the company. In particular, the defendants did not disclose the following to investors: (1) GEO Group has maintained the extremely ineffective COVID-19 reaction process. (2) that these inappropriate procedures pose significant health risks to the occupants of the company's intermediate houses; (3) the company was accordingly exposed to significant financial and / or reputational damage; and (4) as a result, the company's public statements at all relevant times were materially incorrect and misleading.
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If you purchased GEO Group securities during the class period, you can ask the court to notify the court no later than September 8, 2020, to appoint you as the primary plaintiff. You do not need to take any action at this time to be a member of the class. You can keep a lawyer of your choice or take no action and remain an absent member of the class. If you have purchased GEO Group securities, have information or would like to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Frank R. Cruz of The Law Offices of Frank R. Cruz, Avenue of the Stars 1999, Suite 1100, Los Angeles, California 90067, 310-914-5007, by email to email@example.com or visit our website at www.frankcruzlaw.com. When inquiring by email, please provide your mailing address, phone number and number of shares purchased.
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