Faruqi & Faruqi Securities LLP partner James (Josh) Wilson encourages investors who have suffered losses exceeding $50,000 in a PACS group to contact him directly to discuss their options.
If you suffer losses exceeding $50,000 PAX Group Between (a) shares of Common Stock pursuant to and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s initial public offering on April 11, 2024 (the “Offering” or “Offering”); and/or (b) all persons and entities that purchased or otherwise acquired shares of PACS common stock pursuant to, or both, the Traceable SPO Materials (as defined herein) issued in connection with the September 2024 secondary public offering of PACS (the “SPO”). “); and/or (c) securities between April 11, 2024 and November 5, 2024, inclusive (the “Class Period”). and would like to discuss your legal rights, Calls Al-Farouqi and Al-Farouqi partners Josh Wilson live in 877-247-4292 or 212-983-9330 (ext. 1310).
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New York, New York–(Newsfile Corp. – December 15, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against PACS Group, Inc. (“PACS Group” or the “Company”) (NYSE: PACS) and reminds investors of January 13, 2025 deadline For the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.
Farooqui & Farooqui is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated the federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that the Company engaged in a “scheme” to submit false Medicare claims that “ Achieved more than 100% of PACS's operating and net income from 2020 to 2023”; (2) that the company engaged in a “scheme” to “bill thousands of unnecessary respiratory and sensory integration treatments to Medicare”; (3) that the company engaged in a scheme to falsify licensing and employment documents; and (4) that as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On April 11, 2024, PACS Group conducted its initial public offering, selling 21,428,572 shares of common stock at a price of $21.00 per share, receiving net proceeds of approximately $450 million.
On September 3, 2024, PACS filed with the SEC a registration statement for a secondary offering on Form S-1 (the “SPO Registration Statement”). On September 6, 2024, PACS filed with the Securities and Exchange Commission a prospectus for the SPO on Form 424B4, which formed part of the SPO's registration statement (the “SPO Prospectus” and together with the SPO's registration statement and accompanying materials filed or published with such forms), issued “SPO Materials” PACS 2,777,778 shares of common stock at a price of $36.25 per share for proceeds of 100.7 million US dollars. Through the SPO, PACS insiders also sold 16,256,704 shares of common stock at $36.25 per share for proceeds of $589.3 million.
On November 4, 2024, Hindenburg Research published a report based on a 5-month investigation that included interviews with 18 former PACS Group employees and competitors, and an analysis of more than 900 PACS facility cost reports. The report alleged that the company “abused a coronavirus-era waiver” in a “scheme” involving the submission of false Medicare claims that “resulted in a more than 100% increase in PACS' operating and net income from 2020 to 2023, enabling PACS to go public in early 2020.” 2024 with the illusion of legitimate growth and profitability.” The report also alleged that the company engaged in a scheme to conserve revenue by “billing thousands of unnecessary respiratory and sensory integration therapies to Medicare Part B regardless of need or clinical outcomes.” The report also alleged a widespread practice of falsifying documents, including by engaging in “a scheme through which PACS attempts to deceive regulators by ‘renting’ licenses from third parties to ‘hang’ on buildings” and then “either employing unlicensed administrators.” Or have officials manage multiple buildings that exceed the limits permitted by the state.” Likewise, the report alleges that the company was involved in a scheme related to the licensure and staffing of nurses, in which PACS “secretly listed non-certified nurse assistants (NAs) as certified in the system, in an apparent scheme to cheat staffing ratios” and “fake retroactive addition.” RN hours” in order to “meet minimum staffing requirements, enhance star ratings, and avoid costly penalties.”
On this news, the Company's stock price fell $11.93, or 27.78%, to close at $31.01 per share on November 4, 2024, on unusually heavy trading volume.
Then, on November 6, 2024, before the market opened, the company announced that it would postpone the release of its fiscal third-quarter 2024 earnings. The company also disclosed 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 Linked to this week's third party report.
On this news, the Company's stock price fell $11.45, or 38.76%, to close at $18.09 per share on November 6, 2024, on unusually heavy trading volume. As this proceeding commenced, PACS Group shares were trading as low as $18.09 per share, representing a decline of more than 13.9% from its initial public offering price of $21 per share.
A court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class and is appropriate and typical for members of the class who direct and oversee litigation on behalf of the putative class. Any member of the putative class may ask the court to serve as lead plaintiff through counsel of their choice, or they may choose to do nothing and remain an absent member of the class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding PACS Group's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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Lawyer advertisement. The law firm responsible for this announcement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar result with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/233773
