San Francisco, California–(Newsfile Corp. – December 25, 2024)– PAX Group, Inc. (New York Stock Exchange: PAX) and some C-Suite officials are now embroiled in a securities class action lawsuit, following allegations that it misled investors by engaging in deceptive Medicare practices.
Hagens Berman urges investors in PACS Group who have suffered significant losses to file their losses now.
Class period: April 11, 2024 – November. 5, 2024
Lead Plaintiff Deadline: January 13, 2025
Visit: www.hbsslaw.com/investor-fraud/pacs
Contact the company now: PACS@hbsslaw.com
844-916-0895
Class of securities of the PACS Group (PACS). an act (w:)
The complaint alleges that both PACS's April 2024 IPO offering documents and subsequent public statements made by PACS and its executives misrepresented material facts about PACS's operations and prospects. PACS is accused of failing to disclose numerous deceptive practices that made its statements false and misleading, including:
- Submitting fraudulent Medicare claims.
- Medicare billing for unnecessary respiratory and sensory integration therapies.
- Forging licenses and employment documents.
Hindenburg report
The lawsuit comes on the heels of a November 4, 2024 report from investigative firm Hindenburg, which alleged, after a five-month investigation that included interviews with former employees and competitors, that PACS's business model relied heavily on exploitation of taxpayer-funded health care programs. The report claimed that PACS:
- Abuse of the Coronavirus Era Waiver to Improperly Access Medicare Benefits for Too Many Patients.
- Patient records are fabricated to increase revenues and profits.
- Engaging in fraudulent licensing practices to evade regulatory scrutiny.
When the Hindenburg Report was released on November 4, 2024, PACS Group's share price had fallen more than 27%, falling by $11.93.
Federal investigation
The situation worsened on November 6, 2024, when PACS disclosed that it had received civil investigative requests from the federal government regarding reimbursement and referral practices, potentially related to the recent third-party report. Additionally, PACS announced the postponement of its third-quarter financial results to 2024, causing shares to fall more than 38%, closing at $18.09 — a significant decline from its IPO price of $21.
Investigation by Hagen Berman
In response, Hagens Berman launched an investigation into PACS Group's business practices and disclosures.
“Our investigation delves into whether PACS Group systematically defrauded Medicare, potentially causing significant financial harm to both taxpayers and investors,” said Reed Katherine, the Hagens Berman partner leading the investigation. “We are particularly concerned about the alleged misuse of coronavirus-era exemptions and falsified patient records to inflate revenue.”
If you have invested in PACS Group or have knowledge that may assist in company investigations, submit your losses now »
If you want more information and answers to frequently asked questions about the PACS case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding PACS Group should consider their options to assist in the investigation or utilize the SEC Whistleblower Program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Catherine Reed at 844-916-0895 Or email PACS@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a global, complex plaintiffs' rights litigation firm focused on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases that achieve real results for those harmed by corporate negligence and other wrongdoing. The Hagens Berman team has earned more than $2.9 billion in this area of law. More about the company and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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