NEW YORK, Nov. 15, 2024 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired PACS Group, Inc. (“PACS” or the “Company”) (NYSE: PACS) securities between April 11, 2024 and November 5, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that Defendants failed to disclose to investors: (i) that the Company engaged in a “scheme” to submit false Medicare claims which “drove more than 100% of PACS’ operating and net income from 2020 – 2023”; (ii) that the Company engaged in a “scheme” to “bill thousands of unnecessary respiratory and sensory integration therapies to Medicare”; and (iii) that the Company engaged in a scheme to falsify documentation related to licensure and staffing. The Complaint alleges that on November 4, 2024, Hindenburg Research published a report containing allegations to support these contentions. On this news, the Company’s share price fell $11.93, or over 27%, to close at $31.01 per share on November 4, 2024.
The Complaint further alleges that on November 6, 2024, the Company announced that it would postpone its fiscal third quarter 2024 earnings release. The Company further disclosed it had “received civil investigative demands from the federal government regarding the Company’s reimbursement and referral practices that may or may not be related to this week’s third-party report.” On this news, the Company’s share price fell $11.45 or 38.76%, to close at $18.09 per share on November 6, 2024. By the commencement of this action, PACS Group stock has traded as low as $18.09 per share, a more than 13.9% decline from the $21 per share IPO price.
Investors who purchased or otherwise acquired shares of PACS should contact the Firm prior to the January 13, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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