SAN DIEGO, Nov. 19, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired PACS Group, Inc. (NYSE: PACS) (a) common stock in connection with the Company’s April 11, 2024 initial public offering (“IPO”), or (b) securities between April 11, 2024 and November 5, 2024. PACS Group, through its subsidiaries, operates senior care facilities, skilled nursing facilities, and assisted living facilities in the United States.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that PACS Group, Inc. (PACS) Misled Investors Regarding its Reimbursement and Referral Practices
According to the complaint, during the class period, 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”; and (3) that the Company engaged in a scheme to falsify documentation related to licensure and staffing.
Plaintiff alleges that on November 4, 2024, Hindenburg Research published a report containing allegations to support these contentions. On this news, the Company’s share price fell $11.93, or over 27%, to close at $31.01 per share on November 4, 2024.
Plaintiff further alleges that on November 6, 2024, the Company 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, the Company’s share price fell $11.45 or 38.76%, to close at $18.09 per share on November 6, 2024. By the commencement of this action, PACS Group stock has traded as low as $18.09 per share, a more than 13.9% decline from the $21 per share IPO price.
What Now: You may be eligible to participate in the class action against PACS Group, Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by January 13, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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