Yes, private prison companies have sued states when a lack of occupancy has affected their profits, often citing contracts that include occupancy requirements or “guarantees”. These lawsuits can occur due to state-level changes like prison reform or the closure of a facility, and they often involve claims that the state has violated the contract by failing to meet a minimum occupancy level, as seen in the lawsuit filed against California over a ban on private prisons, notes the American Immigrat

A Brief History of California's Epic Journey Toward Prison Reform