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Prison-Phone Owner Defends Buyout After Furor Over Rates

  • Private equity firm is reviewing practices at Securus
  • Investors pressured to avoid profiting from mass incarceration
An inmate in his cell
Photographer: David Paul Morris/Bloomberg

Platinum Equity LLC, one of the buyout firms that has come under fire for profiting from mass incarceration, has told some of its investors that it’s reviewing the practices of Securus Technologies Inc., a prison phone services provider it owns.

In a statement seen by Bloomberg that was sent to clients inquiring about the company, Platinum said it was “acutely aware” that Securus had engaged in practices that put the interests of correctional facilities above those of inmates, and said it is working to transform the business.