21-11-2024 | PACS CLASS ACTION NEWS: The deadline for the PACS Group (PACS) class action is approaching – contact BFA Law before January 13 if you have suffered losses | NYSE: PACS

NEW YORK CITY, NY / ACCESSWIRE / November 21, 2024 / Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against PACS Group, Inc. (NYSE:PACS) and certain senior executives of the company for possible violations of the federal securities laws.

If you have invested in PACS, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases-investigations/pacs-group-inc.

Investors have until January 13, 2025 to ask the court to preside over the case. The complaint alleges claims under Sections 11 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in PACS securities. The case is pending in the United States District Court for the Southern District of New York and is entitled Manchin v. PACS Group, Inc., et al., No. 24-cv-08636.

What is the PACS lawsuit about?

The complaint alleges that PACS is one of the largest operators of skilled nursing facilities in the United States. As alleged, PACS has repeatedly stated to shareholders that it has a winning turnaround strategy to make its nursing facilities profitable. In reality, however, it is alleged that PACS’s turnaround was caused by illegally obtaining Medicare benefits for thousands of patients. On November 4, 2024, leading investment research firm Hindenburg Research published a report titled: “PACS Group: How to Become a Billionaire in the Skilled Nursing Industry by Systematically Defrauding Taxpayers.” After a five-month investigation that included interviews with 18 former PACS employees and competitors, and an analysis of more than 900 PACS facility cost reports, Hindenburg alleged that “PACS misused a COVID-era waiver and improperly accessed Medicare benefits for thousands of people. patients in its national portfolio of facilities.” Hindenburg further estimated that “the scheme generated more than 100% of PACS’s operating and net revenues between 2020 and 2023, allowing PACS to go public in early 2024 with the illusion of legitimate growth and profitability.”

On November 6, 2024, PACS subsequently announced that it was deferring its third quarter earnings and 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 the report of thirds this week.”

The news caused a significant drop in the price of PACS shares. On November 4, 2024, the company’s stock price fell 27.8%, from a closing price of $42.94 per share on November 1, 2024, to $31.01 per share on November 4, 2024. On November 6, 2024, the price fell of the company’s shares. The company’s shares fell 38.8%, from a closing price of $29.54 per share on November 5, 2024, to $18.09 per share on November 6, 2024.

If you have suffered losses, click here: https://www.bfalaw.com/cases-investigations/pacs-group-inc.

What can you do?

If you have invested in PACS, you may have legal options and are encouraged to provide your information to the company.

All representation is on a contingency fee basis at no cost to you. Shareholders are not responsible for any legal fees or costs of proceedings. The company will seek court approval for any fees and costs.

Send your details to:

https://www.bfalaw.com/cases-investigations/pacs-group-inc

Or contact:

Ross Shikowitz

[email protected]

212-789-3619

Why Bleichmar Fonti & Auld LLP?

Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder disputes. It was named one of the top 5 plaintiffs’ law firms by ISS SCAS in 2023 and its lawyers have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among recent notable successes, BFA has recovered more than $900 million in value from the Board of Directors of Tesla, Inc. (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases-investigations/pacs-group-inc

Advertising lawyer. Past results do not guarantee future results.

SOURCE: Bleichmar Fonti & Auld LLP

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