A securities class action has been filed in the USDC — S.D.N.Y. against PACS Group, Inc. (PACS) (“PACS Group” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired: (a) common stock pursuant 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 (“IPO” or the “Offering”); and/or (b) securities between April 11, 2024 and November 5, 2024, both dates inclusive (the “Class Period”).
PACS Group, through its subsidiaries, operates senior care facilities, skilled nursing facilities, and assisted living facilities in the United States.
The claim arises on November 4, 2024, when the Hindenburg Research published a report based on a 5-month investigation that included interviews with eighteen (18) former PACS Group employees, competitors, and an analysis of more than 900 PACS facility cost reports.
The complaint alleges that in the Registration Statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
(1) that the Company engaged in a “scheme” to submit false Medicare claims which “drove more than 100% of PACS’ operating and net income from 2020 – 2023”;
(2) that the Company engaged in a “scheme” to “bill thousands of unnecessary respiratory and sensory integration therapies to Medicare”;
(3) that the Company engaged in a scheme to falsify documentation related to licensure and staffing; and
(4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.
On this news, the Company’s share price fell $11.93 or 27.78%, to close at $31.01 per share on November 4, 2024, on unusually heavy trading volume.
If you purchased PACS Group (a) common stock pursuant 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 (“IPO” or the “Offering”); and/or (b) securities between April 11, 2024 and November 5, 2024, and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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