New York, New York–(Newsfile Corp. – December 31, 2024) – The law firm of Kirby (NYSE:) McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York. York on behalf of those who acquired PACS Group, Inc. (“PACS” or the “Company”) (NYSE: PACS): (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 11 April 2024 (“IPO” or “Offering”); and/or (b) securities during the period from April 8, 2024 to November 5, 2024, inclusive (the “Class Period”). Investors have until January 13, 2025 to submit a request to the court to be appointed as lead plaintiff in the lawsuit.
(Learn more about class action)
On April 11, 2024, PACS 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 November 4, 2024, Hindenburg Research released a report questioning PACS's claims that it has discovered a successful turnaround formula for turning underperforming skilled nursing facilities into “cash taps.” The report claimed PACS's turnaround strategy was to “systematically defraud the taxpayer-funded health care program,” including billing for services and procedures that were not needed and/or provided. The report highlighted PACS's alleged abuse of the waiver in the era of the coronavirus in a scheme that involved falsely submitting false Medicare claims, which resulted in the payment of more than 100% of PACS' operating and net income from 2020 to 2023, enabling PACS to go public. Initial in April 2024 with the illusion of project growth and profitability. On this news, PACS's stock price fell $11.93 per share, or approximately 28%, from $42.94 per share on November 1, 2024, to close at $31.01 on November 4, 2024.
Subsequently, on November 6, 2024, PACS announced that it would postpone the release of its fiscal third-quarter 2024 earnings. PACS 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 related to a third-party report. On this news, PACS's stock price fell $11.45 per share, or approximately 38%, from $29.54 per share on November 5, 2024, to close at $18.09 on November 6, 2024.
The complaint alleges that, in the Registration Statement and throughout the Class Period, PACS failed to disclose to investors: (1) that the Company engaged in a scheme to submit false Medicare claims that resulted in payment of more than 100% of PACS' operating and net income from 2020 to 2023; (2) that the company engaged in a scheme to bill Medicare for thousands of unnecessary respiratory and sensory integration treatments; (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.
If you purchased or otherwise obtained PACS securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP via email at Investings@kmllp.com or fill out The form below to discuss your request. rights or interests with respect to such matters at no cost to you.
Contact form
Kirby McInerney LLP is a New York-based law firm focusing on securities, antitrust, whistleblower, and consumer litigation. The Company's efforts on behalf of shareholders in securities class actions have resulted in recoveries totaling billions of dollars. Additional information about the company can be found on the Kirby McInerney LLP website.
This press release may be considered attorney advertising in some jurisdictions under applicable law and ethical rules.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235646
