Special Litigation Committee of the Board of Directors of CoreCivic defends series of shareholder derivative actions
Client(s) Special Committee of Disinterested Directors of CoreCivit
Jones Day is representing the Special Litigation Committee of the Board of Directors of CoreCivic, a private prison operator, in a series of shareholder derivative actions that have been filed in state and federal court in Tennessee. The complaints allege that CoreCivic officers and directors made false and misleading statements and breached their fiduciary duties in regards to the operation of private prisons. Specifically, the allegations relate to the Department of Justice's announcement in August 2016 that the DOJ would be ending its use of private prisons, including those operated by CoreCivic. That announcement has since been reversed but the suits are ongoing.
Two federal cases have been filed and consolidated. And two state court cases have been filed and are before the same judge but not consolidated. Additionally, the company has received several other derivative demand letters.
In re CoreCivic, Inc. Shareholder Derivative Litigation, Lead Case No. 3:16-CV-03040 (federal consolidated case); Barbara Delgrosso v. John D. Ferguson, et al., 16-1228-IV (Tenn. Chancery Ct.) (state court case); Alex Friedmann v. Mark A. Emkes, et al., 17-096-I (Tenn. Chancery Ct.) (state court case)