Geo Group Stock In Focus After Court Nod To Raise California Detention Intake, EPA Pulls Biden-Era Case
Synopsis
At full occupancy, the Adelanto Center contract is anticipated to generate up to $31 million in additional incremental annualized revenues for GEO.
Geo Group (GEO) stock garnered retail attention after a court order allowed it to fill up a California detention facility at its maximum capacity.
The company also received a regulatory reprieve recently, as the U.S. Environmental Protection Agency withdrew a case against the private prison operator for alleged misuse of a harmful disinfectant in the same facility.
The developments come amid ongoing protests in California over the Trump administration’s crackdown on immigrants and deployment of Marines and National Guard.
On Tuesday, Geo said that a district court in California approved a settlement in a case allowing the company to immediately raise intake to full capacity at the 1,940-bed Adelanto ICE Processing Center.
According to the company, the court had previously issued several injunction orders, including an intake prohibition order issued over four years ago, which limited the use of the Adelanto Center based on then-prevailing COVID-19 conditions.
The Florida-based company said that at full occupancy, the Adelanto Center contract is anticipated to generate up to $31 million in additional incremental annualized revenues for GEO.
Separately, last week, the EPA withdrew a complaint filed during the Biden administration that accused the company of failing to adequately protect its employees when using a disinfectant that can cause eye damage and skin burns.
Prison operators such as Geo have received several U.S. government contracts this year, with the Trump administration asking for even higher spending from Congress for its anti-immigrant policies.
Retail sentiment on Stocktwits was in the ‘extremely bullish’ (79/100) territory, while retail chatter was ‘high.’
Geo stock has fallen 3.1% this year.
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