Dow Jones Online News, Wednesday, September 16, 1998 at 16:32
ATLANTA (Dow Jones)- The widow of an inmate stabbed to death at a Youngstown, Ohio, prison operated by Corrections Corp. of America has filed a $110 million lawsuit against the company, claiming it failed to protect the inmate from his killer, a prisoner who also attacked him three months earlier. In the suit filed Tuesday in the Superior Court of the District of Columbia, India Chisley also alleges Nashville-based Corrections Corp. (CCA) improperly housed violent criminals at the 1,700-inmate facility, which was designed to hold only inmates fit for a medium-security prison. Officials at both CCA and the District of Columbia couldn't be reached for comment Wednesday morning.
and it seemed like we were in for a good run of news in the corrections industry (the stock prices tell all). Has this sort of lawsuit happened alot in the past? If so, have they been successful (do they generally settle or pay the claims) and whats the financial impact of this? Where would they show it in the P&L? Lets hope that this doesn't set a precendance. Any advice?
HRWR, you mentioned that it is better to wait till the knife sticks first and the stock shows steady increases before buying. How do you know that the increases are necessarily steady and not shorts covering or just people buying because it's low or whatever? In other words, how do you tell a steady increase? Thanks.
WHC was going south before the recent stock market downside. It was based on the preception with correction corps REIT dealings and some bad PR that had came out on TV. This sector is not welled favored right now. Yes WHC looks solid on paper, but it is supply and demand. I'm in at 28.5 and I just have to wait and be patient. The only qusetion is how low and for how long. I plan on increasing my holdings, but not until the knife has hit wood. I've tried to decrease my average cost on other stocks on the downside, but I have learned a hard lesson. That is to wait until the stock shows steady increases before I buy more. Yes I could loose a few points, but it is less painful. Anyways good luck to everyone.
The 50K trade I was referring to was fairly late in the day on Tuesday, not Wednesday. It did appear to stimulate a mild ralley Wednesday which died later in the day. I noticed another 50K trade today as well, so let's hope it's the company buying and that the buyback will have the desired effect.