Justice Department calls for dismissal of the Corizon bankruptcy

Sun, 02/25/2024 - 10:18

The interior of a jail with a staircase and a beige cellblock. — The Doña Ana Detention Center, in Las Cruces, New Mexico, where a prisoner died in 2019 after just days in the care of Corizon Health. His family's lawsuit was stayed by Corizon's bankruptcy.
Adria Malcolm for Business Insider

The Justice Department's US Trustee Program has called for dismissal of Corizon Health's bankruptcy.
Sen. Elizabeth Warren applauded the move, saying, "Corizon does not belong in a bankruptcy court."
The Trustee also filed a scathing objection to Corizon's latest proposed $54 million settlement.

In the latest blowback to the correctional healthcare company formerly known as Corizon Health, the Department of Justice's US Trustee Program — the watchdog of the federal bankruptcy system — called for the dismissal of its contentious bankruptcy.