Kirby McInerney LLP reminds investors of PACS Group, Inc. on an important deadline and encourages investors to contact the company through Investing.com

New York, New York–(Newsfile Corp. – December 31, 2024) – Kirby Law Firm (NYSE: ) McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who were purchased by PACS Group, Inc. (“PACS” or the “Company”) (NYSE: PACS): (a) common stock pursuant to and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s initial public offering dated 11 .April 2024 (the “IPO” or the “Offer”); and/or (b) securities during the period from April 8, 2024 to and including November 5, 2024 (the “Class Period”). Investors have until January 13, 2025 to apply to the court to be named lead plaintiff in the lawsuit.

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On April 11, 2024, PACS conducted its IPO, selling 21,428,572 shares of common stock at a price of $21.00 per share, for net proceeds of approximately $450 million. On November 4, 2024, Hindenburg Research issued a report questioning PACS’s claims that it had discovered a winning turnaround formula for turning underperforming care facilities into “cash outlets.” The report claims that PACS’ turnaround strategy amounts to “systematic cheating of the taxpayer-funded health care program,” including billing for services and procedures that were not needed and/or provided. The report highlighted PACS’ alleged misuse of the COVID-19 exemption in a scheme that involved fraudulently submitting false Medicare claims, resulting in more than 100% of PACS’ operating and net income from 2020 to 2023, which allowed PACS to go public in April 2024 with illusions of legitimate growth and profitability. Following this news, PACS stock price fell $11.93 per share, or approximately 28%, from $42.94 per share on November 1, 2024, to $31.01 on November 4, 2024.

Then on November 6, 2024, PACS announced that it would delay its earnings release until the third fiscal quarter of 2024. PACS further disclosed that it has received civil investigation requests from the federal government regarding the company and its referral practices, which may or may not be related. with a third party report. Following this news, PACS stock price fell $11.45 per share, or approximately 38%, from $29.54 per share on November 5, 2024, to $18.09 on November 6, 2024.

The complaint alleges that, in the Registration Statement and during the Lecture Period, PACS failed to disclose to investors: (1) that the Company engaged in a fraudulent Medicare claims scheme that resulted in more than 100% of PACS’s operations and net income from 2020 to 2023; (2) that the company engaged in a scheme to bill Medicare for thousands of unnecessary respiratory and sensory integration therapies; (3) that the Company is involved in a scheme of falsification of documentation related to licensing and employment; and (4) that, as a result of the above, the defendant’s positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.

If you have purchased or otherwise acquired PACS securities, have information or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com or fill out the form below to discuss about your rights or interests in these matters at no cost to you.

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Kirby McInerney LLP is a New York-based law firm specializing in securities, antitrust, whistleblower and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found on the Kirby McInerney LLP website.

This press release may be considered solicitor advertising in some jurisdictions under applicable law and ethical rules.

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