New York, New York–(Newsfile Corp. – December 21, 2024) – A Leading Securities Law Firm Blishmar Fonte & Old LLP Announces filing of lawsuit against PACS Group, Inc. (NYSE: PACS) and certain of the company's senior executives for possible violations of the federal securities laws.
If you invest in PACS, we encourage you to obtain additional information By visiting: https://www.bfalaw.com/cases-investigations/pacs-group-inc.
Investors have until January 13, 2025 to ask the court to appoint them to lead the case. The Complaint asserts claims under Sections 11 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in PACS securities. The case is pending in the U.S. District Court for the Southern District of New York Manchin v. PACS Group, Inc., et al.No. 24-cv-08636.
What is the PACS lawsuit about?
The complaint alleges that PACS is one of the largest operators of skilled nursing facilities in the United States. As alleged, PACS has repeatedly demonstrated to shareholders that it has a winning “turnaround” strategy to make its nursing facilities profitable. However, in reality, PACS's turnaround was allegedly driven by illicit access to Medicare benefits for thousands of patients.
On November 4, 2024, prominent investment research firm Hindenburg Research published a report titled: “PACS Group: How to Become a Billionaire in the Skilled Nursing Industry by Systemically Defrauding Taxpayers.” After a 5-month investigation that included interviews with 18 former employees and competitors of PACS, and an analysis of more than 900 PACS facility cost reports, Hindenburg alleged that “PACS abused the coronavirus-era waiver and improperly accessed skilled Medicare benefits to thousands of patients across its portfolio.” “National Facilities.” Hindenburg also estimated that “the scheme drove more than 100% of PACS's operating and net income from 2020 to 2023, enabling PACS to IPO in early 2024 with the illusion of legitimate growth and profitability.”
On November 6, 2024, PACS subsequently announced that it would postpone its third-quarter dividend and that it had “received civil investigative requests 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.” “.
The news caused a significant drop in PACS's stock price. On November 4, 2024, the company's stock price fell by 27.8%, from a closing price of $42.94 per share on November 1, 2024, to $31.01 per share on November 4, 2024. On November 6, 2024, the stock price fell and the company's stock fell by 38.8%, from Closing price of $29.54 per share on November 5, 2024, to $18.09 per share on November 6, 2024.
Click here if you have suffered losses: https://www.bfalaw.com/cases-investigations/pacs-group-inc.
What can you do?
If you invest in PACS, you may have legal options and we encourage you to provide your information to the company.
All representation is done on a contingency fee basis, and there is no cost to you. Shareholders bear no responsibility for any court costs or litigation expenses. The Company will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/pacs-group-inc
Why Blichmar Fonti & Old Co., Ltd.?
Bleichmar Fonti & Auld LLP is a leading international law firm that represents plaintiffs in securities class actions and shareholder lawsuits. It is ranked a Top 5 Law Firm for Plaintiffs by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs' Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA has recovered over $900 million in value from Tesla's (NASDAQ:) board (pending court approval), as well as $420 million from Teva Pharmaceuticals (NYSE:) Ind. . Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/pacs-group-inc
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