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Learn more about our investigation on our Shareholder Rights Blog:
http://www.robbinsarroyo.com/shareholders-rights-blog/cca/CCA in Contempt of Court for Understaffing Idaho Prison in Violation of Settlement Agreement
CCA owns and operates privatized correctional and detention facilities in the United States. In 2010, the American Civil Liberties Union ("ACLU") sued CCA on behalf of inmates at Idaho Correctional Center due to the level of violence at the prison. On
September 16, 2011, CCA reached a settlement with the ACLU that required increased staffing and other operational changes. That settlement was set to expire this month, but the ACLU asked the judge to extend it and find CCA in contempt for failing to abide by the agreement. In finding CCA in contempt, U.S. District Judge
David Carter noted that the level of understaffing was far worse than the company originally acknowledged. He appointed an independent monitor to oversee staffing at the prison and stated that fines – starting at
$100 an hour – will incur if the company violates the agreement again.
Robbins Arroyo LLP highlights that CCA shareholders have the option to pursue a shareholder litigation demand or
shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800) 350-6003,
DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they have invested. For more information, please go to
Attorney Advertising. Past results do not guarantee a similar outcome.