PHILADELPHIA, Nov. 16, 2024 (GLOBE NEWSWIRE) -- The law firm of Barrack, Rodos & Bacine announces that a class action lawsuit has been filed on behalf of investors who purchased stock in PACS Group, Inc. (NYSE: PACS), from April 11, 2024 through and including November 5, 2024 (the “Class Period”).
WHAT’S THIS ABOUT?
On November 4, 2024, Hindenburg Research published a research report about PACS alleging, among other things, that the company has been “systematically scamming taxpayers.” According to Hindenburg, PACS inflated its Medicare revenue by misusing COVID waivers from 2020 to 2023.
According to Hindenburg, a key element of PACS’ deception was inappropriately categorizing individuals who had simply tested positive for COVID–or, worse, merely been exposed to the virus–as qualifying for “skilled care,” in violation of both Medicare and Department of Justice guidelines. This scheme immediately drives up revenue by as much as 300% per day. These fraudulent categorizations were responsible for “100% of PACS’ operating income from 2020- 2023,” as per Hindenburg.
PACS shares fell as much as 30% after the release of the Hindenburg report, closing down about $13 per share on the day the report was issued, shearing off over two billion dollars in market capitalization.
Then, on November 6, 2024, the Company issued a statement announcing that it was delaying the release of quarterly financials and that the Audit Committee of the Board of Directors, with assistance from outside counsel, had commenced an investigation of the allegations included in the Hindenburg Report. On this news, the trading price of PACS stock again fell $11.45 per share, a drop of more than 38%.
The lawsuit alleges that by virtue of PACS’ failure to disclose materially adverse facts, or by making false and/or misleading statements in its SEC filings throughout the class period, PACS has violated the Securities Act of 1933 and the Securities Exchange Act of 1934.
WHAT CAN I DO?
If you purchased PACS’ stock during the Class Period–that is, at any time until the end of the class period, on November 5, 2024–and sustained a loss on your investment, you are encouraged to contact us about your rights in this matter and the possibility of leading this class action lawsuit. You may contact the firm by calling Linda Border or Mark Stein at 877-386-3304, or via email at investoralert@barrack.com, or by visiting the firm’s web site www.barrack.com.
Investors have until January 13, 2025, to submit a motion to be appointed as lead plaintiff. Your ability to participate in any recovery does not require that you serve as lead plaintiff or attempt to do so.
WHO WE ARE
Barrack, Rodos & Bacine has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in U.S. history of securities litigation. The firm's largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.
