SAN FRANCISCO, Jan. 13, 2025 (GLOBE NEWSWIRE) — PACS Group (NYSE: BAX)the nursing home operator that saw its shares soar after its initial public offering in April, has seen a sharp decline in recent weeks, losing 70 percent of its market value since early November. The company is now grappling with allegations of deceptive Medicare billing practices, a federal regulatory investigation, delayed financial reporting, and a burgeoning investor class action lawsuit.
Equity firm Hagens Berman is investigating pending allegations alleging that PACS and its senior executives violated U.S. securities laws and is urging investors who suffered significant losses to file theirs now.
Class period: April 11 November 2024.” 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
PACS rapid rise and sudden fall
The company, which operates a network of independently managed facilities under the Providence Group banner, offering services ranging from skilled nursing care to assisted and independent living, debuted on the New York Stock Exchange to much fanfare, and its shares doubled from their $21 offering price within seven months. . But the festive mood suddenly changed in early November.
The catalyst for the company's collapse came on November 4, when Hindenburg Research, a well-known activist short-selling firm, published a scathing report accusing PACS of a series of wrongdoing. The report alleged that the company improperly exploited a COVID-era waiver to access Medicare funds for many patients, fabricated patient records to inflate revenues and profits, and engaged in fraudulent licensing practices to circumvent regulatory oversight.
Market reaction and federal scrutiny
The market reaction was quick. PACS's stock price fell more than 27 percent on the day the Hindenburg report was released, wiping nearly $12 off the value of the stock.
The turmoil intensified two days later, on November 6, when PACS revealed that it had received demands for a civil investigation from federal authorities regarding reimbursement and referral practices, a development that appeared to support elements of the Hindenburg Report. The company also announced a delay in releasing its third-quarter 2024 financial results, eroding investor confidence and sending shares down an additional 38 percent, closing at $18.09 below their initial offering price.
PACS class of securities an act (w:)
The repercussions of these disclosures extended beyond the stock market. A securities class action lawsuit, Manchin v. PACS Group, Inc., et al., No. 24-cv-08636, in the U.S. District Court for the Southern District of New York. The lawsuit alleges that PACS misled investors by claiming that it had successfully implemented a turnaround strategy to restore profitability to its nursing facilities. The complaint asserts that this alleged diversion was in fact driven by the improper capture of Medicare benefits for thousands of patients.
Hagen-Bermann probe
In response, Hagens Berman launched an investigation into PACS Group's business practices and disclosures.
PACS's alleged misuse of Medicare funds and tampering with patient records raises serious concerns about potential fraud, said Reed Katherine, the Hagens Berman partner leading the investigation.
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.
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.
communication:
Reed Katherine, 844-916-0895
Source: Hagens Berman Sobol Shapiro LLP
