PACS Group (PACS) Investors Alerted to Today’s Deadline for Lead Plaintiff in Securities Class Action Investing.com
SAN FRANCISCO, Jan. 13, 2025 (GLOBE NEWSWIRE) — PACS Group (NYSE: PACS)the nursing home operator, whose shares soared after an initial public offering in April, has seen a sharp decline in recent weeks, losing 70 percent of its market capitalization since early November. The company is now grappling with allegations of deceptive Medicare billing practices, a federal regulatory investigation, delayed financial reports and a growing investor class action lawsuit.
Shareholder rights firm Hagens Berman is investigating pending lawsuits alleging PACS and its senior executives violated US securities laws and is urging investors who have suffered significant losses to report their losses now.
Class period: April 11, 2024 ” November 5, 2024
Deadline for the chief prosecutor: January 13, 2025
Visit: www.hbsslaw.com/investor-fraud/pacs
Contact the company now: PACS@hbsslaw.com
844-916-0895
PACS Swift Rise and Sudden Fall
The company, which operates a network of independently managed facilities under the Providence Group banner, offering services ranging from skilled nursing care to assisted and independent living, debuted on the New York Stock Exchange to great fanfare, with its stock doubling from its offering price of $21 within seven months. But the celebratory mood changed abruptly in early November.
The catalyst for the company’s demise came on November 4, when Hindenburg Research, a well-known activist short-selling firm, released a scathing report accusing PACS of a series of improprieties. The report alleges that the company improperly used a Covid-era exemption to access Medicare funds for numerous patients, falsified patient records to inflate revenues and earnings, and engaged in fraudulent licensing practices to circumvent regulatory oversight.
Market reaction and federal oversight
The market reacted quickly. PACS’s stock price fell more than 27 percent the day Hindenburg’s report was released, wiping out nearly $12 in value per share.
The turmoil intensified two days later, on November 6, when PACS revealed it had received requests for a civil investigation from federal authorities into reimbursement and referral practices that appeared to support elements of the Hindenburg Report. The company also announced a delay in reporting its financial results for the third quarter of 2024, further denting investor confidence and sending the stock down a further 38 percent to close at $18.09” below the initial offer price.
Securities class PACS Action (WA:)
The fallout from these announcements extended beyond the stock market. Securities Class Action, Manchin v. PACS Group, Inc., et al., No. 24-cv-08636, was filed in the US District Court for the Southern District of New York. The lawsuit alleges that PACS misled investors by claiming that it was successfully executing a turnaround strategy to return its nursing facilities to profitability. The lawsuit alleges that this alleged reversal was actually prompted by the improper acquisition of Medicare benefits for thousands of patients.
The Hagens Berman Probe
In response, Hagens Berman launched an investigation into PACS Group’s business practices and disclosures.
The PACS group’s alleged misuse of Medicare funds and manipulation of patient records raises serious concerns about potential fraud, said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you have invested in PACS Group or have information that can help investigate the company, report your losses now »
If you would like more information and answers to frequently asked questions about the PACS case and our investigation, read more »
Whistleblowers: Persons with non-public information about PACS Group should consider their options for assisting in the investigation or using the SEC’s Whistleblower Program. Under the new program, whistleblowers who provide original information can receive awards totaling up to 30 percent of each successful recovery by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email PACS@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global complex litigation firm focusing on corporate liability. The firm has a strong practice representing investors, as well as whistleblowers, workers, consumers and others in cases that achieve real results for those harmed by corporate negligence and other wrongdoing. The Hagens Berman team secured more than $2.9 billion in this area of law. You can find more about the firm and its achievements at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
Source: Hagens Berman Sobol Shapiro LLP
