PHILADELPHIA, Dec. 18, 2024 (GLOBE NEWSWIRE) — The law firm of Barrack, Rodos & Bacine announced that a class action lawsuit has been filed on behalf of investors who purchased stock in PACS Group, Inc. (NYSE: PACS), from April 11, 2024 to and including November 5, 2024 (the Class Period).

WHAT IS THIS?
On November 4, 2024, Hindenburg Research published a research report on PACS alleging, among other things, that the company systematically defrauded taxpayers. According to Hindenburg, PACS increased Medicare revenue by misusing the COVID waivers from 2020 to 2023.

According to Hindenburg, a key element of PACS fraud is inappropriately categorizing individuals who test positive for COVID”or, worse, simply exposed to the virus”as eligible for skilled care, which violates Medicare and Department of Justice guidelines. . This method instantly boosts income up to 300% daily. These fraudulent categories are responsible for 100% of PACS operating income from 2020-2023, according to Hindenburg.

PACS shares fell as much as 30% after the release of the Hindenburg report, closing at about $13 per share on the day the report was issued, cutting more than two billion dollars off its market capitalization.

Then, on November 6, 2024, the Company issued a statement announcing that it was delaying the release of quarterly financials and that the Audit Committee of the Board of Directors, with assistance from an outside attorney, had begun an investigation. of the allegations included in the Hindenburg Report. On this news, the trading price of PACS stock fell again to $11.45 per share, a drop of more than 38%.

The lawsuit alleges that by PACS’s failure to disclose material adverse facts, or by making false and/or misleading statements in its SEC filings throughout the class period, PACS violated the Securities Act of 1933 and the Securities Exchange Act of 1934.

WHAT SHOULD I DO?
If you purchased PACS stock during the Class Period”that is, at any time through the end of the class period, on November 5, 2024″and suffered a loss on your investment, you are encouraged to contact us about your its rights. matter and the possibility of leading this class action lawsuit. You can contact the company by calling Linda Border or Mark Stein at 877-386-3304, or by email at [email protected], or by visiting the company’s website at www.barrack.com.

Investors have until January 13, 2025, to submit a motion to be designated as the lead plaintiff. Your ability to participate in any recovery does not require that you serve as the lead plaintiff or attempt to do so.

WHO WE ARE
Barrack, Rodos & Bacine has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest which reverses US history in securities litigation. The largest company recoveries for investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson (NYSE: ) investors, and $970.5 million for investors of AIG (NYSE: ).

Source: Barrack Rodos & Bacine