06:01 PM EDT, 06/20/2024 (MT Newswires) -- GEO Group ( GEO ) said late Thursday that it is "no longer willing to manage" the 2,600-bed Lawton Correctional and Rehabilitation Facility without changes to financial and operational terms with the Oklahoma Department of Corrections.

Ending the contract will not have a "material impact on GEO's financial guidance," according to a statement.

The company proposed a new three-month transition agreement starting July 1, "allowing for an orderly relocation of inmates if new funding and contract terms cannot be mutually agreed upon."

Wage inflation and staffing shortages "have "negatively impacted staff recruitment and retention at all state correctional facilities," the company said. The Oklahoma legislature's approval for a funding veto will "only exacerbate our significant challenges," GEO Group ( GEO ) said.

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