PHILADELPHIA, Dec. 18, 2024 (GLOBE NEWSWIRE) — The law firm of Barrack, Rhodes & Basin has announced that PACS Group, Inc. (NYSE: PACS ), a class action lawsuit has been filed on behalf of investors who bought stock. From April 11, 2024 to and including November 5, 2024 (Class Period).
What about it?
On November 4, 2024, Hindenburg Research published a research report on PACS, alleging that the company was systematically defrauding taxpayers. According to Hindenburg, PACS increased its Medicare revenue from 2020 to 2023 by abusing the Covid waivers.
According to Hindenburg, a key element of the PACS deception was inappropriately classifying individuals who had only tested positive for Covid” or worse, had only been exposed to the virus” as eligible for skilled care. at, in violation of both Medicare and Department of Justice guidelines. . This scheme instantly increases revenue up to 300% per day. According to Hindenburg, these fraudulent classifications were responsible for 100% of PACS operating income from 2020-2023.
Shares of PACS fell 30% after the release of the Hindenburg report, closing at around $13 per share on the day the report was released, adding more than two billion dollars to its 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 the assistance of outside counsel, had begun an investigation into the allegations. . The Hindenburg Report. On this news, the trading price of PACS stock fell again to $11.45 per share, a decline of more than 38%.
The lawsuit alleges that by PACS’s failure to disclose materially adverse facts, or by making false and/or misleading statements in its SEC filings during the class period, PACS violated the Securities Act of 1933 and Violated the Securities Exchange Act of 1934.
what can I do?
If you purchased PACS stock during the Class Period “that is, at any time through the end of the Class Period, on November 5, 2024” and suffered a loss on your investment, you should contact us about your rights thereto. is encouraged for The matter and the possibility of this leading to a class action lawsuit. You may contact the firm by calling Linda Border or Mark Stein at 877-386-3304, or by email at investoralert@barrack.com, or by visiting the firm’s web site at 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 the lead plaintiff or attempt to do so.
Who are we?
Barrack, Rhodes & Bessin has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and some of the most successful securities litigation in American history. A huge recovery has been achieved from The firm’s largest recoveries on behalf of investors included $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson (NYSE: ) investors, and $970.5 million for AIG (NYSE: ) investors.
Source: Barracks Rhodes and Basin
