GEO Group Trims Investor Suit on Prison Condition Liability Risk

The GEO Group Inc. is partially free of accusations it misled investors about liability risk stemming from conditions at its private prisons after a federal judge in Florida found some of the securities suit’s allegations lacking.

Investors didn’t sufficiently allege that some of the for-profit prison company’s statements after mid-July 2019 caused their losses, so only the allegations centered on earlier GEO Group statements remain in play, the US District Court for the Southern District of Florida said.

The investors say GEO Group told them it didn’t expect lawsuits over conditions in its facilities and treatment of the people ...