Corrections Corp.

Tallahassee, FL: (Dec-11-07) The state brought a lawsuit against Corrections Corp. of America, alleging that the company owed the state $3.635 million for alleged overcharges. The suit stemmed from a dispute dating back several years. Sources claimed that a 2005 audit by the Department of Management Services revealed numerous questionable payments to companies operating private prisons, when they were overseen by the old Corrections Privatization Commission. The Corrections Privatization Commission was abolished and operation of the six private-prison contracts was given to Department of Management Services that year. As part of a settlement reached, Corrections Corp. of America agreed to pay the state $1.55 million to resolve allegations. The parties were mutually satisfied with the deal as it avoids a protracted legal proceeding that would be costly and uncertain.

[NEWS PRESS] Deal reached in state private-prison dispute

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Published on Dec-13-07