Robbins LLP Is Investigating the Officers and Directors of Corrections Corporation of America on Behalf of Shareholders

Robbins LLP is investigating whether certain officers and directors of Corrections Corporation of America ("CCA") (NYSE: CXW) breached their fiduciary duties to shareholders.

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 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, or you can complete the form below and we will contact you directly.