Upcoming Lead Plaintiff Deadline is January 13, 2025
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NEW YORK, Nov. 22, 2024 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”) announces that a federal securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of persons and entities that purchased or otherwise acquired against PACS Group, Inc. ("PACS" or the "Company") (NYSE: PACS).
The lawsuit is brought on behalf of investors who acquired PACS:
- common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the "Registration Statement") issued in connection with PACS' April 11, 2024, initial public offering (the "IPO"); and/or
- securities between April 11, 2024, and November 5, 2024, inclusive (the "Class Period").
All investors who purchased shares and incurred losses are advised to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses, you may, no later than January 13, 2025, request that the Court appoint you as the lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
On November 4, 2024, Hindenburg Research ("Hindenburg") published a report based on a 5-month investigation that included interviews with 18 former PACS employees, competitors, and an analysis of more than 900 PACS facility cost reports. The report alleged that the Company had "abused a COVID-era waiver" in a "scheme" that involved falsely submitting false Medicare claims which "drove more than 100% of PACS' operating and net income from 2020 – 2023, enabling PACS to IPO in early 2024 with the illusion of legitimate growth and profitability." The report further alleged that the Company engaged in a scheme to maintain revenue by "billing thousands of unnecessary respiratory and sensory integration therapies to Medicare Part B regardless of clinical need or outcomes."
The report also alleged that PACS engaged in a widespread practice of falsifying documentation, including by engaging in a "scheme whereby PACS attempts to fool regulators by 'renting' licenses from third parties to 'hang' on buildings" and then "either employs unlicensed administrators or has administrators manage multiple buildings in excess of state mandated limits." Similarly, the report alleged that the Company engaged in a scheme related to licensure and staffing of nurses, whereby "PACS secretly lists uncertified nurse aides (NAs) as certified in the system, in an apparent scheme to cheat staffing ratios" and "retroactively add fake RN hours" in order "to meet minimum staffing requirements, boost star ratings, and avoid costly penalties."
Following publication of the Hindenburg report, PACS's stock price fell $11.93 per share, or 27.78%, to close at $31.01 per share on November 4, 2024. Then, on November 6, 2024, PACS announced that it would postpone its fiscal third quarter 2024 earnings release. The Company further disclosed it had "received civil investigative demands from the federal government regarding the Company's reimbursement and referral practices that may or may not be related to this week's third-party report."
On this news, PACS's stock price fell an additional $11.45 per share, or 38.76%, to close at $18.09 per share on November 6, 2024.
Wolf Haldenstein has experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas, and offices in New York, Chicago, Nashville and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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