SAN FRANCISCO, Jan. 13, 2025 (GLOBE NEWSWIRE) — PACS Group (NYSE: PACS)a nursing home operator that saw its stock soar after its initial public offering in April has experienced a sharp decline in recent weeks, losing 70 percent of its market capitalization since early November. The company is currently battling allegations of fraudulent Medicare billing practices, a federal regulatory investigation, delayed financial reporting and a trend toward It’s a case in point.

Shareholder rights firm Hagens Berman is investigating pending claims alleging PACS and its senior executives violated US securities laws and solicited investors who suffered significant losses. to submit your losses now.

Class Time: April 11, 2024 “Nov. 5, 2024
Lead Plaintiff Deadline: Jan. 13, 2025
Visit: www.hbsslaw.com/investor-fraud/pacs
Contact The Firm Today: [email protected]
844-916-0895

PACS Rapid Rise and Sudden Fall

The company, which operates a network of independently operated facilities under the Providence Group banner, offers services from skilled nursing care to assisted and independent living, debuted in New York Stock Exchange up to considerable enthusiasm, its shares doubled from the offer price of $21 inside. seven months. But the celebratory mood suddenly shifted in early November.

The reason for the company’s dissolution came on November 4, when Hindenburg Research, a well-known activist short-selling firm, published a scathing report accusing PACS of a series of improprieties. The report said the company improperly took advantage of a waiver during the Covid period to access Medicare funds for many patients, created patient records to increase revenue and profits, and shared of fraudulent licensing practices to avoid regulatory oversight.

Market Reaction and Federal Investigation

The market reacted quickly. PACS’ stock price fell more than 27 percent the day the Hindenburg report was released, wiping out nearly $12 in value per share.

The chaos escalated two days later, on Nov. 6, when PACS disclosed that it had received civil investigation demands from federal authorities regarding its reimbursement and referral practices, a development that appeared to confirm elements of the Hindenburg report. The company also announced a delay in the release of financial results in the third quarter of 2024, which further undermined investor confidence and sent shares down an additional 38 percent, closing at $18.09” lower. at its initial offering price.

Class of Securities in PACS action (W:)

The fallout from these revelations extended beyond the stock market. A securities class-action case, Manchin v. PACS Group, Inc., et al., No. 24-cv-08636, filed in the US District Court for the Southern District of New York. The lawsuit alleges that PACS misled investors by claiming to have successfully implemented a turnaround strategy to restore profitability at its nursing facilities. The complaint contends that this alleged change was, in fact, motivated by improperly claiming Medicare benefits for thousands of patients.

Berman’s Probe by Hagen

In response, Hagens Berman launched an investigation into PACS Group’s business practices and disclosures.

PACS Group’s alleged misuse of Medicare funds and manipulation of patient records raise serious concerns about possible fraud, said Reed Kathrein, the Hagens Berman partner who led the investigation.

If you have invested in PACS Group or have knowledge that could help the company’s investigation, submit 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 taking advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global rights litigation firm focusing on corporate liability. The firm is home to a strong practice and represents investors as well as whistleblowers, workers, consumers and others in cases that achieve real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of ​​law. More about the firm and its achievements can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathryn, 844-916-0895

Source: Hagens Berman Sobol Shapiro LLP