GEO Group Hit With Investor Suit Over Forced Labor Claims 1 GEO Group Hit With Investor Suit Over Forced Labor Claims

GEO Group Hit With Investor Suit Over Forced Labor Claims

By Rae Ann Varona (August 25, 2022, 2:41 PM EDT) — An investor of The GEO Group has lodged a derivative suit against higher-ups of the private prison operator, saying their disclosures about GEO’s financial prospects didn’t match internal financial concerns stemming from lawsuits alleging forced labor by immigrant detainees.

Gerardo Maldonado Jr., a stockholder since 2017, filed his complaint Wednesday on behalf of GEO in a Florida federal court. He said that GEO’s board of directors and some of its executive officers, including co-founder and former CEO George C. Zoley, made “materially misleading” statements in financial reports that GEO did not expect the lawsuits to have a negative impact on its financial…