SAN FRANCISCO, Dec. 23, 2024 (GLOBE NEWSWIRE) -- PACS Group, Inc. (NYSE: PACS) and certain of its C-Suite officers are now entangled in a securities class action lawsuit, following allegations of misleading investors by engaging in deceptive Medicare practices.
Hagens Berman urges investors in PACS Group who suffered substantial losses to submit your losses now.
Class Period: Apr. 11, 2024 – Nov. 5, 2024
Lead Plaintiff Deadline: Jan. 13, 2025
Visit: www.hbsslaw.com/investor-fraud/pacs
Contact the Firm Now: PACS@hbsslaw.com
844-916-0895
PACS Group (PACS) Securities Class Action
The complaint alleges that both PACS’s April 2024 IPO offering documents and subsequent public statements made by PACS and its executives misrepresented material facts about PACS’s operations and prospects. It accuses PACS of omitting to disclose several deceptive practices that rendered their statements false and misleading, including:
- Submitting fraudulent Medicare claims.
- Billing Medicare for unnecessary respiratory and sensory integration therapies.
- Falsifying licensure and staffing documentation.
The Hindenburg Report
The lawsuit follows a Nov. 4, 2024 report from the investigative firm Hindenburg, which, after a five-month inquiry involving interviews with former employees and competitors, claimed that PACS’ business model heavily relies on exploiting taxpayer-funded healthcare programs. The report alleged that PACS:
- Misused a COVID-era waiver to improperly access Medicare benefits for numerous patients.
- Fabricated patient records to boost revenue and earnings.
- Engaged in fraudulent licensing practices to evade regulatory scrutiny.
On the release of the Hindenburg report on November 4, 2024, PACS Group’s stock price plummeted by over 27%, shedding $11.93.
Federal Investigation
The situation worsened on November 6, 2024, when PACS disclosed that it had received civil investigative demands from the federal government concerning its reimbursement and referral practices, potentially linked to the recent third-party report. Additionally, PACS announced the postponement of its Q3 2024 financial results, causing shares to fall further by over 38%, closing at $18.09—a significant drop from its $21 IPO price.
Hagens Berman’s Investigation
In response, Hagens Berman has launched an investigation into PACS Group’s business practices and disclosures.
“Our investigation is delving into whether PACS Group systematically defrauded Medicare, potentially causing significant financial harm to both taxpayers and investors,” said Reed Kathrein, the Hagens Berman partner leading the investigation. “We are particularly concerned about the alleged misuse of COVID-era waivers and falsified patient records to inflate revenue.”
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 PACS@hbsslaw.com.
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
