Private prisons' stocks drop on Warren pledge

Private prisons' stocks drop on Warren pledge
© Greg Nash

Shares in private prisons dropped Friday after Sen. Elizabeth WarrenElizabeth WarrenFiscal conservatives should support postal reform  Five Democrats the left plans to target Arizona Democratic Party executive board censures Sinema MORE (D-Mass.) pledged to ban them if elected president, according to CNN.

Private prison operator CoreCivic's stock fell 5 percent. Shares of The GEO Group, a Florida-based private prison and detention company, fell 5.6 percent. Those drops came as broader stock market on Friday was flat, leaning toward growing.


Warren earlier Friday called for the abolition of private prisons and private immigration facilities "by ending all contracts that the Bureau of Prisons and ICE [Immigration and Customs Enforcement] have with private detention providers."

The Massachusetts lawmaker described private detention facilities as rife with corruption, mistreatment of inmates and support from lobbying efforts in Washington.

Warren's campaign told CNN they were unfazed by the stock drop.

"They shouldn't have a share price because they shouldn't exist," Kristen Orthman, campaign communications director, said.

A spokesperson for the Geo Group told the outlet its facilities are "highly rated by independent accreditation entities."

"Senator Warren's announcement is a continuation of politically-motivated attacks based on false narratives," the spokesperson said, adding the company would welcome lawmakers like Warren to come visit.

CoreCivic said "it's unfortunate that politicians advocate" against private prisons that "keep communities safe, enrolls thousands of inmates in reentry programs that prepare them for life after prison and saves taxpayers millions."