SAN DIEGO, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Dicello Levitt LLP announces that it has launched an investigation into whether PACS Group, Inc. (“PACS” or the “Company”) (NYSE: PACS) complied with federal securities laws. The Firm’s investigation focuses on whether the Company violated the federal securities laws, issued false and/or misleading statements, and/or failed to disclose information required to be disclosed to investors.
Investors who purchase PACS securities and those with information about the allegations are encouraged to obtain additional information and assist the Firm’s investigation by contacting DiCello Levitt attorneys Brian O’Mara or Hani Farah by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Case Has Been Filed and No Class Has Been Certified. Until a case is filed and a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Investigation Details:
PACS is a Utah-based operator of skilled nursing facilities (“SNFs”), which typically serve patients “who need additional help recuperating from acute conditions, illnesses, or serious medical procedures after they have been discharged from the hospital” but “still require 24-hour in-patient services.” Since 2019, PACS has grown its SNFs portfolio by 240% by adding over 145 locations. Since April 11, 2024, when PACS issued its initial public offering (“IPO”), its stock price has risen ~104%, making it one of the most successful IPOs of 2024.
On November 4, 2024, Hindenburg Research published a critical research report titled “PACS Group: How To Become A Billionaire In The Skilled Nursing Industry By Systematically Scamming Taxpayers,” alleging, among other things, that it “revealed that PACS’ ‘turnaround’ strategy largely boils down to systematically scamming taxpayer-funded healthcare programs.” According to the report, Hindenburg Research claims that the alleged fraud, abuse of a COVID-era waiver that enabled inappropriate access to skilled care Medicare benefits, and improper billing and staffing schemes is confirmed as a result of a five-month investigation, through interviews with former employees and competitors, and an analysis of 900+ detailed facility-level cost reports.
In response to the Hindenburg Research report, shares of PACS plummeted approximately 27% to close at $31.01 per share on November 4, 2024.
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