Skip navigation

News Articles

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.

For any type of search, click on the magnifying glass icon to enter one or more keywords, and you can refine your search criteria using "More search options." Note that searches for "CCA" and "Corrections Corporation of America" will return different results. 


 

Articles about Private Prisons

Court Finds for Defendants in Juvenile Class-Action Against Florida County Sheriff and Corizon

On March 15, 2012, suit was brought against Grady Judd, Sheriff of Polk County, Florida and the jail’s health care provider, Corizon Health Inc., for violating the constitutional rights of its juvenile prisoners. Plaintiffs filed for class certification, and temporary and permanent injunctive relief based on Fourteenth Amendment violations of the U.S. Constitution.

Plaintiffs raised five Fourteenth Amendment violations, alleging that the defendants:

  1. failed to provide the juveniles with “rehabilitative services,”
  2. failed to protect the plaintiffs from “unlawful force,” and “unreasonable restraints,” used by staff, and generally created “dangerously violent conditions of confinement,”
  3. demonstrated “deliberate indifference to their mental health needs” by removing juveniles from “suicide watch” and placing them in “punitive isolation without penological justification,”
  4. failed to provide prisoners with “necessary mental health treatment,” and
  5. exercised “deliberate indifference” in their disproportionate use of punitive isolation.

However, plaintiffs did not assert any state constitutional claim, federal or state statutory claim, or state law tort claim. Consequently, the court ordered plaintiffs to file a proposed finding of fact and conclusion of law explaining their “understanding of the governing constitutional standard.”

After reviewing a cumbersome 450+ pages submitted by plaintiffs and defendants, the court responded with its own 185-page finding of fact ...

Prisoners Pay Millions to Call Loved Ones Every Year. Now this Company Wants Even More

Prisoners Pay Millions to Call Loved Ones Every Year. Now this Company Wants Even More

by Ben Walsh, Huffington Post

A captive market, no competition and government contracts that make monopoly-enabled price gouging the industry standard – it’s never been in doubt that the prison phone business is a very profitable model.

A presentation that the privately-held prison telecom company Securus made to investors that The Huffington Post obtained shows just how much money there is to be made as the state-sanctioned middleman between prisoners and the outside world: $404.6 million last year alone.

Securus, which provides phone services to 2,600 prisons and jails in 47 states, made $114.6 million in profit on that revenue in 2014. Securus’ gross profit margin – a measure of the difference between the cost to provide its services, and what it charges for them – was a whopping 51 percent. And Securus, with a 20 percent market share, isn’t even the biggest prison phone company. That would be Global Tel*Link, or GTL, which has a 50 percent market share, the New York Times reported. GTL drew national attention for its prominent role in the 2014 viral podcast Serial.

While Securus is already making massive ...

Corporations You’ve Never Heard of are Making Millions from Mass Incarceration

By James Kilgore, Truthout

Likely the most well-known prison profiteers in the United States are the Corrections Corporation of America and The GEO Group. Between them, these two firms pulled in about $3.3 billion last year running scores of private prisons and immigration detention centers.

However, these two firms are not alone in feasting at the trough of corrections expenditures. Many other companies, most of them off the popular radar, are also benefiting from epidemic prison and jail building. Some may even be operating in your neighborhood. Here we’ll do a quick sketch of several such companies, outline their activities, ponder their deeds of infamy and reflect a little on how to curtail their profiteering.

Turner Construction: If We Build it They Will Come

Let’s start with the construction sector. Prison construction managers don’t come with a tool box and a pick-up. They are world-class operators. The largest player in this field is New York-based Turner Construction, a subsidiary of the German giant Hochtief.

According to IBISWorld, Turner’s average annual income for prison and jail construction came to $278 million per year from 2007 to 2012. This represents lots of money in most quarters, but qualifies as only slightly more ...

Tennessee Prisoners Suing Private Prisons Not Required to File in Local Venue

Tennessee Prisoners Suing Private Prisons Not Required to File in Local Venue

by David Reutter

The Tennessee Supreme Court has held that a state statute requiring a local venue for lawsuits filed by indigent prisoners does not apply to actions that accrued while a prisoner “was housed in a correctional facility operated by a private corporation pursuant to a contract with the state or local government.”

When Tennessee state prisoner Sandy Eugene Womack arrived at the Whiteville Correctional Facility (WCF) in Hardeman County in February 2010, he had a cut on his right ankle. He alleged that he did not receive adequate treatment for the cut and, as a result, his right leg was amputated below the knee on September 28, 2010. WCF is owned and operated by Corrections Corporation of America (CCA).

At the time he filed suit, Womack was housed at the DeBerry Special Needs Facility located in Davidson County, a state prison run by the Tennessee Department of Correction (TDOC). Womack filed his lawsuit in Davidson County, stating it was “CCA’s principal place of business” and alleging the company’s “negligent acts, omissions, and/or intentional acts ... result[ed] in the amputation of [his] leg.”

CCA moved to dismiss ...

Does Political Spending by Private Prison Firms in Oklahoma Influence Prison Reform?

Does Political Spending by Private Prison Firms in Oklahoma Influence Prison Reform?

by Joe Watson

Three private prison corporations, including the nation’s two largest, have contributed more than a combined $400,000 to political candidates in Oklahoma since 2004, prompting at least one prominent state legislator to question the correlation between political spending and the state’s stalled Justice Reinvestment Initiative (JRI), a prison reform law enacted in 2012.

“Follow the money,” said state Senator Constance Johnson. “This whole notion of special interests having undue influence on the legislative process, this is proof.” Johnson, a long-time advocate of sentencing reform, said the Oklahoma legislature has increasingly become “pro-private prisons, pro-enhanced felonies; the thing I stand up and argue about all the time.”

A Tulsa World analysis of campaign finance reports disclosed by the Oklahoma Ethics Commission, published on January 6, 2014, revealed that Corrections Corporation of America (CCA), The GEO Group, Inc. and Avalon Correctional Services, Inc. together donated $414,397 to the campaign coffers of Governor Mary Fallin, Lt. Governor Todd Lamb, House Speaker T.W. Shannon and at least 78 other state lawmakers, including the chairman of the Senate Appropriations Committee, Senator Clark Jolley.

The analysis found that Fallin topped the list ...

Failure to State Rationale in Denying Appointment of Counsel was Abuse of Discretion

Failure to State Rationale in Denying Appointment of Counsel was Abuse of Discretion

The Seventh Circuit Court of Appeals held in July 2014 that the denial of a prisoner’s motions for appointment of counsel in a civil rights action was an abuse of discretion. It also stated the district court had improperly decided a summary judgment motion without resolving a pending motion for more time to conduct discovery.

Indiana prisoner Leonard Dewitt, 51, filed a civil rights complaint alleging deliberate indifference to his serious medical needs against private medical contractor Corizon. He alleged that in 2007 while at the Wabash Correctional Facility, he submitted a Request for Healthcare to Corizon staff, stating something was wrong with his left eye and his vision was “like looking through a dirty piece of plastic.” He was prescribed glasses.

Upon release on parole in May 2008, Dewitt was diagnosed with a form of glaucoma and underwent surgery. He was reimprisoned in 2009 and again requested care for his eye. He received medication that did not work, as well as other treatment, but not the care that he specifically sought – removal of his left eye. He eventually had surgery to remove part of his ...

Who Owns Private Prison Stock?

Who Owns Private Prison Stock?

by Alex Friedmann

The nation’s two largest for-profit prison companies, Tennessee-based Corrections Corporation of America (CCA) and Florida-based GEO Group (GEO), are publicly traded on the New York Stock Exchange. Other private prison firms, including Management & Training Corporation (MTC), Community Education Centers (CEC), LaSalle Southwest Corrections and Emerald Correctional Management, are privately-held and thus do not have public stock.

As of July 2015, CCA had issued approximately 117 million shares of stock with a market cap of $4.05 billion, while GEO had issued around 75 million shares with a market cap of $2.76 billion. So who owns the vast majority of stock in these two companies? The answer is not everyday people or individual investors, but rather other corporations – banks, mutual fund management companies and private equity firms – as well as public employee retirement systems.

In fact, around 92.4% of CCA’s stock was owned by 300 institutional investors while 91.1% of GEO Group stock was owned by 272 institutional investors at the end of July 2015. In some cases, the same institutional investors held stock in both companies.

The largest owner of CCA stock was Vanguard Group, Inc., with 16.79 million shares ...

Report Finds Two-Thirds of Private Prison Contracts Include “Lockup Quotas”

Report Finds Two-Thirds of Private Prison Contracts Include “Lockup Quotas”

by Joe Watson

An analysis of private prison contracts from across the United States reveals that state and local governments commonly enter into agreements that require them to keep prisons filled or pay for unused, empty beds.

In the Public Interest (ITPI), a Washington, D.C.-based research and policy group on public services, reported in September 2013 that it found so-called bed guarantees in around 65% of the more than 60 private prison contracts it analyzed, including contracts from Texas, Ohio, Colorado and Florida. The bed guarantees, or “lockup quotas,” ranged from 70% minimum occupancy in at least one California facility to 100% occupancy at three Arizona prisons. The most common bed guarantee was 90%.

Public officials who agree to lockup quotas, according to corrections experts, become obligated – against their communities’ best interests – to keep prisons filled to ensure that taxpayer dollars aren’t being wasted.

“It’s really shortsighted public policy to do anything that ties the hands of the state,” said Michele Deitch, a senior lecturer at the University of Texas School of Public Affairs and an expert on private prisons. “If there are these incentives to keep the ...

Virginia Must Improve Prison Medical Care Under Proposed Class-action Settlement

Virginia Must Improve Prison Medical Care Under Proposed Class-action Settlement

by David Reutter

The Virginia Department of Corrections (VDOC) has agreed to let a court-appointed monitor examine medical policies at all state prisons, and to allow a third-party physician to oversee health care at the Fluvanna Correctional Center for Women (FCCW) as part of a proposed settlement in a class-action federal lawsuit.

The agreement was reached the same day that U.S. District Court Judge Norman K. Moon held the VDOC could not escape its constitutional responsibility to provide adequate medical care to state prisoners by hiring a private contractor. The parties filed a notice of settlement on November 25, 2014, just six days before a trial was scheduled to begin on the prisoners’ claims that health care at FCCW was so inadequate that it violated their Eighth Amendment rights.

“The Department of Corrections, as with most defendants, does not concede that they were at fault,” said Mary Bauer, director of the Legal Aid Justice Center, which represents the prisoners. “However, you can read into the settlement that significant changes need to be made.”

The lawsuit was filed in July 2012 on behalf of five prisoners at FCCW. [See: PLN, ...

Peer-Review Reports Must be Disclosed in Philadelphia Jail Conditions Suit

Peer-Review Reports Must be Disclosed in Philadelphia Jail Conditions Suit

by David Reutter

A Pennsylvania federal district court held on November 4, 2014 that medical care contractor Corizon Health has to produce mortality and sentinel event reviews in a class-action suit filed by prisoners in the Philadelphia Prison System (PPS) seeking equitable relief from unconstitutional conditions of confinement.

The lawsuit alleges that the PPS is overcrowded and triple-celled, and overcrowding results in danger to the health and safety of the prisoner population. Before the court was a discovery request filed by the plaintiffs that sought “mortality and sentinel event reviews for deaths that occurred in custody from January 2012 to December 1, 2013.”

The PPS defendants sought to obtain the discovery information from Corizon, a non-party to the suit, but the company objected, contending that the records were not discoverable because they were protected by Pennsylvania’s peer-review privilege law. The plaintiffs argued that federal courts do not recognize the state peer-review privilege.

The district court explained that where, as here, there are both federal and state law claims in a case, “the federal rule favoring admissibility, rather than any state law privilege, is the controlling rule.” Therefore, “the mere fact ...