SAN FRANCISCO, CA / ACCESSWIRE / November 27, 2024 / PACS Group, Inc. (NYSE:PACS) and certain of its key executives have been named as defendants in a securities class action brought on behalf of PACS investors alleging violations of the U.S. securities laws.
Hagens Berman has begun an investigation into the matter and urges investors in PACS Group who purchased shares pursuant to PACS' April 2024 IPO or on the post-IPO open market and suffered substantial losses to submit your losses now.
Class Period: Apr. 11, 2024 - Nov. 5, 2024
Lead Plaintiff Deadline: Jan. 13, 2025
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PACS Group (PACS) Securities Class Action:
The complaint alleges that, in the IPO offering documents and throughout the Class Period, PACS and additional defendants made false and misleading statements and failed to disclose that PACS engaged in schemes to: (1) submit false Medicare claims; (2) bill thousands of unnecessary respiratory and sensory integration therapies to Medicare; and (3) falsify documentation related to licensure and staffing.
The lawsuit follows Hindenburg's Nov. 4, 2024 report, which was the product of an investigation that spanned five months and involved interviews with numerous former employees and competitors, concluded that PACS's business model relies heavily on exploiting taxpayer-funded healthcare programs. The famed analyst alleges that the company:
Abused a COVID-era waiver to inappropriately access Medicare benefits for thousands of patients.
Falsified patient records to inflate revenue and earnings.
Engaged in fraudulent licensing practices to circumvent regulatory oversight.
On the news of the Hindenburg report, the price of PACS Group shares plunged $11.93, or over 27% lower.
Then, on Nov. 6, 2024, PACS revealed that it received civil investigative demands from the federal government "regarding the Company's reimbursement and referral practices that may or may not relate to this week's third-party report." PACS also announced the postponement of its Q3 2024 financial results.
This news drove the price of PACS shares crashing $11.45, or over 38% lower, to close at $18.09 (well below the $21 IPO price).
In response to the allegations, law firm Hagens Berman has initiated an investigation into PACS Group's business practices and disclosures. The firm is seeking to represent investors who may have suffered significant losses due to the company's alleged misconduct.
"We're focused on whether PACS may have misled investors and regulators about its business practices and purported value-creation strategies," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in PACS Group or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the PACS case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding PACS Group should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling 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].
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving 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 successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP