GEO Group Inc. said Friday that the Federal Bureau of Prisons (BOP) has rescinded the renewal of the contract to operate the company-owned D. Ray James Correctional Facility. That’s an about face from GEO’s announcement earlier Friday, in which the company said the BOP renewed the contract to run the Georgia prison. “Based on ongoing discussions between GEO and the BOP, GEO expects to receive a new contract modification to operate the facility under new terms to be negotiated,” GEO said in a statement. The stock is currently halted for news. Prior to the halt, it had shot up 13% after the contract renewal announcement. On Thursday, the stock had plunged 40% after the Justice Department said it planned to phase out the use of for-profit prison facilities. The stock had lost 33% year to date, while the S&P 500 has gained 6.5%.
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