GEO - CoreCivic stock climbs after reaching agreement to settle lawsuit

CoreCivic (CXW) stock jumps 3.8% after the REIT reaches an agreement in principle to settle a shareholder lawsuit that was filed in August 2016 against the company and certain of its current and former officers.The company will pay $56M in return for dismissal of the case with prejudice and a full release of all claims against all defendants, including the current and former officers.The suit was filed after the company's stock price sank following a Aug. 18, 2016 Department of Justice memorandum instructed the Federal Bureau of Prisons to reduce and ultimately end the use of privately operated prisons."While we continue to believe the allegations in this case were without merit, we also believe that eliminating the risk, cost and distraction related to the litigation is in the best interest of CoreCivic and its shareholders," said CoreCivic President and CEO Damon Hininger.Peer GEO Group (GEO) shares gain 1.9%.In January 2021, CoreCivic and GEO

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CoreCivic stock climbs after reaching agreement to settle lawsuit