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This site contains over 2,000 news articles, legal briefs and publications related to for-profit companies that provide correctional services. Most of the content under the "Articles" tab below is from our Prison Legal News site. PLN, a monthly print publication, has been reporting on criminal justice-related issues, including prison privatization, since 1990. If you are seeking pleadings or court rulings in lawsuits and other legal proceedings involving private prison companies, search under the "Legal Briefs" tab. For reports, audits and other publications related to the private prison industry, search using the "Publications" tab.
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California State Retirement Systems Split on Decision to Divest from Private Prisons
by Scott Grammer
The Teachers’ Retirement Board of the California State Retirement System (CalSTRS) has decided to get out of private prison investments by dumping CoreCivic and GEO Group stock from its portfolio. About $12 million worth of stock is involved – which represents a fraction of the companies’ combined $4.57 billion market cap.
In a November 7, 2018 press release, Investment Committee Chairman Harry Keiley said, “The board conducted a review of the staff research. We agreed that the engagement efforts were thorough and listened to our expert investment consultants. Based on all the information and advice we were provided, the board decided to divest according to the policy criteria.” That decision occurred after officials visited detention facilities and met with senior management of both private prison firms.
The Chief Investment Officer for CalSTRS, Christopher Ailman, said there was an increased risk to the retirement system’s portfolio due to human rights violations at privately-operated detention centers used to house immigrants and their children.
In contrast, the California Public Employees’ Retirement System (CalPERS) recently voted against divestment from private prisons. The agenda for a March 18, 2019 meeting of CalPERS’ investment committee stated, “as a California state agency, CalPERS is sensitive to public policy issues, but recognizes that our primary duty and obligation is to our members,” adding, “Divestment almost invariably harms investment performance by compromising investment strategies and increasing transaction costs.”
It was estimated that selling off CalPERS’ 10 million shares in CoreCivic and GEO Group would have cost the $351 billion pension system around $175,000 in fees and market losses.
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Sources: barrons.com, pionline.com, bloomberglaw.com, ai-cio.com
