No insurance…

March 11, 2004

A lawsuit that The Geo Group (GGI) , the large correctional services company formerly known as Wackenhut Correctional Corp, first disclosed in last year’s K may be a potentially bigger problem, according to the K filed by the company this year. Ten employees in California, where the company has significant operations, filed a suit in 2002 over wage and hour issues and have been seeking class certification. The company hasn’t estimated the potential damages, but in the past has said that it could have a material effect on both earnings and cash flow. In this year’s K, the company adds the disclosure that it has no insurance for those potential damages or the cost of defending the suit, which the company says it is actively doing.

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