(CNBC) Shares of two major prison stocks dropped sharply late Thursday morning following a report the U.S. Justice Department will end the use of private prisons.
Corrections Corp. of America and GEO both plunged more than 40 percent in midday trade. Trading in both stocks was intermittently halted amid their decline Thursday.
The news was initially reported by The Washington Post, which cited a memo from Deputy Attorney General Sally Yates instructing officials to either not renew private prison contracts or "substantially reduce" their scope.
Advertisement - story continues below