BFA Law informs PACS Group, Inc. investors with losses about the upcoming January 13 deadline and encourages you to contact the company through Investing.com
New York, New York–(Newsfile Corp. – January 6, 2025) – A leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against PACS Group, Inc. (NYSE: PACS) and certain senior executives of the company for possible violations of federal securities laws.
If you have invested in PACS, we encourage you to get more information visiting: https://www.bfalaw.com/cases-investigations/pacs-group-inc.
Investors have until January 13, 2025 to ask the court to appoint them to manage the case. 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 US District Court for the Southern District of New York and is subtitled Manchin v. PACS Group, Inc., et al.number 24-cv-08636.
What is the PACS lawsuit about?
The lawsuit alleges that PACS is one of the largest operators of skilled nursing facilities in the United States. As noted, PACS has repeatedly presented to shareholders that it has a winning “turnaround” strategy to make its nursing facilities profitable. However, the truth is that the PACS turnaround was fueled by illegal access to Medicare benefits for thousands of patients.
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 Frauding Taxpayers.” After a five-month investigation that included interviews with 18 former PACS employees, competitors and an analysis of more than 900 PACS expense reports, Hindenburg asserted that “PACS abused the COVID-era exemption by improperly accessing Medicare qualified care benefits for thousands of patients across its national portfolio of facilities.” Hindenburg further estimated that “the scheme launched more than 100% of PACS’ operating and net income from 2020 to 2023, enabling PACS to IPO in early 2024 with the illusion of legitimate growth and profitability.”
On November 6, 2024, PACS then announced that it was delaying its third quarter earnings and that it had “received requests for a civil investigation from the federal government regarding the company and the Company’s referral practices that may or may not be related to this week’s third quarter report. sides.”
The news caused a significant drop in the PACS share price. On November 4, 2024, the company’s stock price 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. On November 6, 2024, the stock price The company’s shares fell 38.8% from their closing price of $29.54 per share on November 5. 2024 to $18.09 per share on November 6, 2024.
Click here if you have suffered losses: https://www.bfalaw.com/cases-investigations/pacs-group-inc.
What can you do?
If you have invested in a PACS, you may have legal options and we encourage you to hand over your information to the company.
All representation is on a contingency fee basis, at no cost to you. Shareholders are not responsible for any court costs or litigation expenses. The Company will seek court approval for all potential fees and costs.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/pacs-group-inc
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. ISS SCAS named it a Top 5 Law Firm for Plaintiffs in 2023, Thompson Reuters named its attorneys Titans of the Plaintiff Bar Association, and Thompson Reuters SuperLawyers. Among its recent notable successes, BFA recovered over $900 million in value from Tesla (NASDAQ: ), Inc. board of directors (pending court approval), as well as $420 million from Teva Pharmaceutical (NYSE: ) Ind. Ltd.
For more information about BFA and its attorneys, visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/pacs-group-inc
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To view the original version of this press release, visit https://www.newsfilecorp.com/release/235872
