PHILADELPHIA, Dec. 18, 2024 (GLOBE NEWSWIRE) — The law firm of Barrack, Rodos & Bacine announces the filing of a class action lawsuit on behalf of investors who purchased shares of PACS Group, Inc. (NYSE: PACS), from April 11, 2024 through November 5, 2024 (Class Period).
What is this?
On November 4, 2024, Hindenburg Research published a research report on PACS alleging, among other things, that the company was systematically defrauding taxpayers. According to Hindenburg, PACS inflated its Medicare revenue by abusing coronavirus waivers from 2020 to 2023.
According to Hindenburg, a key element of the PACS deception was inappropriately classifying individuals who simply tested positive for coronavirus “or, worse, were exposed to the virus” as eligible for skilled care, in violation of both Medicare and the Department of Justice guidelines. . This scheme instantly increases revenue by up to 300% per day. These fraudulent classifications were responsible for 100% of PACS’s operating income from 2020 to 2023, according to Hindenburg.
PACS shares fell as much as 30% after the Hindenburg report was released, and closed at about $13 per share on the day of the report’s release, shaving more than $2 billion off its market cap.
Subsequently, on November 6, 2024, the Company issued a statement announcing that it would delay the release of its quarterly financial statements and that the Audit Committee of the Board of Directors, with the assistance of outside counsel, began investigating the allegations contained in the quarterly financial statements. Hindenburg report. On this news, the trading price of PACS shares fell again by $11.45 per share, a decline of more than 38%.
The lawsuit alleges that because PACS failed to disclose material adverse facts, or by making false and/or misleading statements in its filings with the SEC throughout the Class Period, PACS violated the Securities Act of 1933 and the Securities Exchange Act of 1934.
what can i do?
If you purchased PACS shares during the Class Period (i.e., at any time through the end of the Class Period, on November 5, 2024) and suffer a loss on your investment, we encourage you to contact us about your rights in this matter and the possibility of leading this class action. You can contact the Firm by calling Linda Border or Mark Stein at 877-386-3304, by email at [email protected], or by visiting the Firm’s website at www.barrack.com.
Investors have until January 13, 2025 to apply to be appointed as lead plaintiffs. Your ability to participate in any recovery does not require that you serve as lead plaintiff or attempt to do so.
Who are we?
Barrack, Rodos & Bacine has more than four decades of experience prosecuting securities law claims, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in U.S. history in securities class actions. The company’s largest recoveries on behalf of investors include $6.19 billion to WorldCom investors, $3.32 billion to Cendant investors, $1.05 billion to McKesson (NYSE:) investors, and $970.5 million to AIG (NYSE:) investors.
Source: Barak Rhodes and Basin
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