CoreCivic to settle shareholders lawsuit for $56 million

CoreCivic Fraud Lawsuit
Posted at 1:57 PM, Apr 19, 2021
and last updated 2021-04-19 14:57:16-04

NASHVILLE, Tenn. (AP) — Private prison operator CoreCivic says it has reached an agreement in principle to settle a shareholders lawsuit for $56 million.

The suit claimed the Tennessee-based company inflated stock prices by misrepresenting the quality and value of its services. Corecivic has said that's not true, but in a news release on the potential settlement, the company says it has agreed to pay $56 million payment in exchange for a dismissal of the case and full release of all claims.

The settlement must still be approved by a judge. A jury trial had been scheduled to begin on May 10.