NEW YORK - (NewMediaWire) - July 16, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in The GEO Group, Inc. ("GEO" or the "Company")(NYSE:GEO) of the September 8, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in GEO stock or options between February 27, 2020 and June 16, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/GEO. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Southern District of Florida on behalf of all those who purchased GEO securities between February 27, 2020 and June 16, 2020 (the "Class Period"). The case, Hartel v. The GEO Group, Inc. et al., No. 20-cv-81063 was filed on July 7, 2020, and has been assigned to Judge Rodney Smith.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) GEO Group maintained woefully ineffective COVID-19 response procedures; (2) those inadequate procedures subjected residents of the Company's halfway houses to significant health risks; (3) 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.
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's share price fell from $13.20 per share on June 16, 2020 to a closing price of $12.17 on June 17, 2020: a $1.03 or a 7.80% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding GEO's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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