Investigations
PACS Group, Inc.
Overview
Overview
- Deadline:
- Jan 13, 2025
| Company Name: | Company Name: PACS Group, Inc. |
| Stock Symbol: | Stock Symbol: PACS |
PACS Group Inc. (NYSE: PACS): PACS Group Inc. (“PACS” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 11 and 15 of the Securities Act of 1933, and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in PACS securities. The case is pending in the U.S. District Court for the Southern District of New York and is captioned Manchin v. PACS Group, Inc., et al., No. 24-cv-08636.
If you incurred losses on your investments in PACS, you are encouraged to submit your information.
Why was PACS Sued for Securities Fraud?
The Complaint alleges that PACS is one of the largest operators of skilled nursing facilities in the United States. As alleged, PACS repeatedly represented to shareholders that it possesses a winning “turnaround” strategy to make its nursing facilities profitable. However, in truth, it is alleged that PACS’s turnaround was driven by illicitly accessing Medicare benefits for thousands of patients. However, in truth, it is alleged that PACS’s turnaround was driven by illicitly accessing Medicare benefits for thousands of patients.
The Stock Declines as the Truth is Revealed
On November 4, 2024, prominent investment research firm Hindenburg Research published a report titled: “PACS Group: How to Become A Billionaire In The Skilled Nursing Industry By Systematically Scamming Taxpayers.” After a 5-month investigation that included interviews with 18 former PACS employees, competitors, and an analysis of more than 900 PACS facility cost reports, Hindenburg alleged that “PACS abused a COVID-era waiver, inappropriately accessing skilled care Medicare benefits for thousands of patients across its national portfolio of facilities.” Hindenburg further estimated that “the scheme drove more than 100% of PACS’ operating and net income from 2020 – 2023, enabling PACS to IPO in early 2024 with the illusion of legitimate growth and profitability.” On this news, the price of the Company’s stock fell 27.8%, from a closing price of $42.94 per share on November 1, 2024, to $31.01 per share on November 4, 2024.
Then, on November 6, 2024, PACS then announced that it was postponing its Q3 earnings and that it had “received civil investigative demands from the federal government regarding the Company’s reimbursement and referral practices that may or may not be related to this week’s third-party report.” On this news, the price of the Company’s stock fell 38.8%, from a closing price of $29.54 per share on November 5, 2024, to $18.09 per share on November 6, 2024.
What are my Rights?
If you purchased or otherwise acquired PACS securities, you may ask the Court no later than January 13, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in PACS, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
If you incurred losses on your investments in PACS, you are encouraged to submit your information.
Why was PACS Sued for Securities Fraud?
The Complaint alleges that PACS is one of the largest operators of skilled nursing facilities in the United States. As alleged, PACS repeatedly represented to shareholders that it possesses a winning “turnaround” strategy to make its nursing facilities profitable. However, in truth, it is alleged that PACS’s turnaround was driven by illicitly accessing Medicare benefits for thousands of patients. However, in truth, it is alleged that PACS’s turnaround was driven by illicitly accessing Medicare benefits for thousands of patients.
The Stock Declines as the Truth is Revealed
On November 4, 2024, prominent investment research firm Hindenburg Research published a report titled: “PACS Group: How to Become A Billionaire In The Skilled Nursing Industry By Systematically Scamming Taxpayers.” After a 5-month investigation that included interviews with 18 former PACS employees, competitors, and an analysis of more than 900 PACS facility cost reports, Hindenburg alleged that “PACS abused a COVID-era waiver, inappropriately accessing skilled care Medicare benefits for thousands of patients across its national portfolio of facilities.” Hindenburg further estimated that “the scheme drove more than 100% of PACS’ operating and net income from 2020 – 2023, enabling PACS to IPO in early 2024 with the illusion of legitimate growth and profitability.” On this news, the price of the Company’s stock fell 27.8%, from a closing price of $42.94 per share on November 1, 2024, to $31.01 per share on November 4, 2024.
Then, on November 6, 2024, PACS then announced that it was postponing its Q3 earnings and that it had “received civil investigative demands from the federal government regarding the Company’s reimbursement and referral practices that may or may not be related to this week’s third-party report.” On this news, the price of the Company’s stock fell 38.8%, from a closing price of $29.54 per share on November 5, 2024, to $18.09 per share on November 6, 2024.
What are my Rights?
If you purchased or otherwise acquired PACS securities, you may ask the Court no later than January 13, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in PACS, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.