On the 2 yr anniversary of the @Edu4MigrJustice campaign launch, @ESGtransparency is sharing the groundbreaking report that led CalPERS, the US’ largest pension, to divest from for-profit prison giants CoreCivic & GEO Group.
👉🏻 Check out the report at esg-transparency.org
👉🏻 Check out the report at esg-transparency.org
I'll be adding to this 🧵throughout the day to highlight some of the most shocking & important details from the report (and help break them down into English).
GEO doesn't have insurance for "claims related 2 employment matters," which likely applies 2 claims in all 3 class-action suits. In a '19 SEC filing, GEO identifies "an⬆️in unreimbursed labor rates" & their “exposure to⬆️employee & inmate med costs” as threats 2 their bottom line
This has led analysts 2 cast doubt on GEO's ability 2 cover litigation expenses & fines stemming from their corp practices. These concerns were reinforced in GEO’s latest 10-K SEC filing, where the co’s estimated cost of uninsured claims was identified as a critical audit measure
Analysts have also identified potential concerns with GEO’s asset-liability valuation ratios, and indicated that GEO’s accounting and financial reporting practices "MAY WARRANT CLOSE ATTENTION FROM SHAREHOLDERS."
GEO’s goodwill valuation, which incl the value of the co’s brand name, & customer base also raises some big🚩, as GEO reported goodwill of $776.4 m. as of Dec '19 w/ total assets of $4,317 m.
Compare w/ CC, which estimates its goodwill at $50.5 m., w/ total assets of $3,791.6 m.
Compare w/ CC, which estimates its goodwill at $50.5 m., w/ total assets of $3,791.6 m.
Then there's also this recent development with GEO's auditors that raises even more concerns about the accuracy and reliability of these figures.
Or, to put that in English, while GEO's financials may seem remarkably healthier than CoreCivic's at first glance, it's all but impossible to believe that's truly the reality on the ground.
