Faruqi & Faruqi, LLP investigates claims on behalf of investors PACS Group By Investing.com

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Faruqi & Faruqi, LLP securities litigation partner James (Josh) Wilson He encourages investors who have suffered losses of more than $50,000 in the PACS group to contact him directly to discuss their options.

If you have suffered losses greater than $50,000 PACS group between (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 April 11, 2024 initial public offering (the “IPO” or the “Offering”). ; and/or (b) all persons and entities that purchased or otherwise acquired PACS common stock pursuant to, or pursuant to, or both, the SPO materials (as defined herein) issued in connection with the PACS secondary public offering of September 2024 (“SPO “); and/or (c) securities between April 11, 2024 and November 5, 2024 inclusive (“Class Period”) and we would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson direct on 877-247-4292 or 212-983-9330 (ext. 1310).

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New York, New York–(Newsfile Corp. – January 11, 2025) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against PACS Group, Inc. (“PACS Group” or the “Company” “) (NYSE: PACS) and reminds investors of The deadline is January 13, 2025 to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its inception in 1995. See www.faruqilaw.com.

As set forth below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the following: (1) that the Company engaged in a filing “scheme”; fraudulent Medicare claims that “driven more than 100% of PACS’ operating 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 foregoing, the defendant’s positive statements about the Company’s business, operations and prospects were materially misleading and/or had no reasonable basis.

On April 11, 2024, PACS Group conducted an IPO, selling 21,428,572 common shares at a price of $21.00 per share, for net proceeds of approximately $450 million.

On September 3, 2024, PACS filed a secondary offering registration statement on Form S-1 (the “SPO Registration Statement”) with the SEC. On September 6, 2024, PACS filed with the SEC an SPO prospectus on Form 424B4, which formed part of the SPO Registration Statement (the “SPO Prospectus” and together with the SPO Registration Statement and related materials filed or published in addition to these forms , “SPO Materials.” revenue of $100.7 million for the company Via SPO, PACS insiders also sold 16,256,704 shares of common stock at a price of $36.25 per share for proceeds of $589.3 million.

On November 4, 2024, Hindenburg Research released a report based on a 5-month investigation that included interviews with 18 former PACS Group employees, competitors, and an analysis of more than 900 PACS expense reports. The report said the company “abused the COVID-19 exemption” in a “scheme” that involved the fraudulent submission of fraudulent Medicare claims that “fueled 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.” The report goes on to say that the company is involved in an “account” income maintenance scheme.[ing] thousands of unnecessary respiratory and sensory integration therapies to Medicare Part B regardless of clinical need or outcomes.” The report also cited widespread falsification practices, including involvement in “a scheme in which PACS attempts to defraud regulators by ‘renting’ third-party licenses to ‘hang’ on buildings,” and then “either employs unlicensed administrators or has administrators manage multiple state-restricted buildings.” Similarly, the report states that the company is involved in a licensing scheme and nurse recruitment, with “PACS secretly listing non-certified nurses (NAs) as certified in the system, in an apparent scheme to cheat staffing ratios ” and “retroactively add fake RN hours” to “meet minimum staffing requirements, increase star ratings and avoid expensive fines.”

Following this news, the Company’s share price fell $11.93, or 27.78%, to close at $31.01 per share on November 4, 2024, due to unusually high trading volume.

Then, on November 6, 2024, before the market opened, the Company announced that it would delay its earnings release for the third fiscal quarter of 2024. The Company further disclosed that it has “received requests for a civil investigation from the federal government regarding compensation and referral of companies that may , but may not be related to this week’s third-party report.”

Following this news, the Company’s share price fell $11.45, or 38.76%, to close at $18.09 per share on November 6, 2024, due to unusually high trading volume. By the time this action began, PACS Group stock was trading at just $18.09 per share, down more than 13.9% from its IPO price of $21 per share.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of the class members who directs and oversees the litigation on behalf of the putative class. Any putative class member may propose to the Court to serve as lead plaintiff through counsel of his or her choosing, or may choose to do nothing and remain an absent class member. Your ability to participate in any recovery is not affected by the decision whether or not you will be the lead plaintiff.

Faruqi & Faruqi, LLP also encourages anyone with information about PACS Group’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Advertising of lawyers. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.

To view the original version of this press release, visit https://www.newsfilecorp.com/release/236729

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