Edelson Lechtzin Launches Investigation of Encompass Health Corporation Following Significant Stock Decline

Investigation Alert: Encompass Health Corporation Under Scrutiny

Edelson Lechtzin LLP is embarking on an investigation into Encompass Health Corporation (NYSE: EHC) due to possible breaches of federal securities laws. This probe comes on the heels of a recent exposé published by The New York Times, which raised alarming concerns regarding patient safety at Encompass rehabilitation hospitals.

With nearly 166 facilities spread across 38 states, Encompass stands as the largest owner and operator of inpatient rehabilitation hospitals in the United States. The company is known for providing essential post-acute care services, including various forms of therapy to assist patients recovering from critical health challenges.

Allegations and Impact on Stock

The health care sector is already under significant scrutiny, and the revelations regarding Encompass have only intensified this concern. In an article published on July 15, 2025, The New York Times outlined serious patient safety issues at Encompass facilities. Alarmingly, it reported that the company operates 34 out of 41 inpatient rehab centers that Medicare flagged due to significantly higher rates of preventable readmissions for discharged patients. The reported incidents spanned serious issues such as fatal carbon monoxide poisoning, medication errors, and failures in bed alarms.

The immediate aftermath of the article was swift and damaging: Encompass Health's stock price declined by $12.39 per share, or approximately 10.35%, closing at $107.28 per share on the very same day the article was published. This marked a substantial loss for investors, raising the urgency for potential legal action.

Call for Investors and Witnesses

Edelson Lechtzin LLP is encouraging investors who have experienced significant losses or anyone with pertinent information about Encompass’s purported wrongdoing to reach out to the firm. Interested parties can easily get in touch by providing their contact information and trading details. Legal representatives such as attorney Eric Lechtzin can also be contacted directly at the firm for further inquiry.

This investigation exemplifies the law firm's ongoing commitment to holding corporations accountable for securities fraud and financial misconduct.

About Edelson Lechtzin LLP

Edelson Lechtzin LLP operates as a national class action law firm with offices situated in both Pennsylvania and California. The firm is dedicated to representing individuals and groups in securities and investment fraud cases, along with other significant legal areas, including antitrust violations, worker's rights under ERISA, data security, and consumer fraud.

As this situation develops, the firm promises to keep impacted investors informed about their legal rights and potential avenues for recovery.