Shares of U.S. private prison companies jumped today after Attorney General Jeff Sessions rescinded an Obama-issued memo meant to curtail their use by the federal government. Shares of CoreCivic—formerly the Corrections Corporation of America—were up almost 3% in after-hours trading. Similarly, GEO Group saw a bump, though not quite as large.
Here's what just happened to the stock for CoreCivic (formerly CCA), the nation's largest private prison company: pic.twitter.com/VyndB39H0o— Betsy Woodruff (@woodruffbets) February 23, 2017
As was reported earlier, Sessions directed the Bureau of Prisons to resume contracting with private prisons. Politico reported in October that GEO Group had retained a number of lobbyists to focus on various issues—among them two former aides to Sessions, who were to focus specifically on the federal use of contracts. CZ