Geo Group Inc. (NASDAQ: GEO) stock gained by 51.42% in the current market trading session. There is no recent news available regarding this surge in GEO stock price. In the United States, Australia, South Africa, and the United Kingdom, the GEO Group is a completely integrated equity real estate investment trust that specializes in the designing, financing, building, and management of secure facilities, processing centers, and community reintegration centers.
Recent Past Development
Between February 27, 2020, and June 16, 2020, shareholder rights law firm Robbins LLP is investigating The GEO Group’s executives and directors for violations of fiduciary responsibility and infractions of the Securities Exchange Act of 1934.
The GEO Group praised the GEO’s COVID-19 response, as per a class-action lawsuit filed on behalf of customers of The GEO Group between February 27, 2020, and June 16, 2020. “Since the beginning of this worldwide epidemic, the corporate, regional, and field personnel have taken thorough actions to address and limit the hazards of COVID-19 to all people in their care and their workers,” GEO added. The GEO Group reiterated the competency of its COVID-19 response on May 6, 2020, claiming that it “provided advice to all of our institutions, commensurate with the guidelines released by the Centers for Disease Control for correctional and detention institutions.”
Despite these optimistic portrayals, The Intercept released a story on June 17, 2020, outlining a massive COVID-19 epidemic in a halfway home run by The GEO Group. The GEO Group’s reaction was described as “blundering,” and the study went on to say that “the virus spread not in spite of the facility’s efforts to prevent it, but because of it,” citing overcrowding and a lack of enforcement of personal protective measures.