Cornell Companies, Inc.

Shareholders filed a securities fraud class action lawsuit against the correctional center operator in March 2002. The class was filed on behalf of all purchasers of Cornell's common stock from March 6, 2001 to March 5, 2002. Cornell does not admit any wrongdoing, but has agreed to a $7 million class action settlement to avoid costly litigation. (Feb-10-06) [HOUSTON CHRONICLE]