#USA #New York #Class Action #PACS Group #Pomerantz LLP

Overview

PACS Group, Inc. is currently embroiled in a class action lawsuit filed by the Pomerantz Law Firm. This legal action is primarily focused on allegations of securities fraud and unlawful business practices. Investors who have suffered losses related to their PACS investments are being urged to take note of upcoming deadlines to potentially join the class action.

The Lawsuit Details

As the news of this lawsuit unfolds, shareholders of PACS should be particularly vigilant. The law firm Pomerantz LLP, which has offices across multiple cities including New York, Chicago, and London, is taking the lead on this class action case. Shareholders who acquired PACS securities during a specified class period can contact Danielle Peyton at the law firm for more information.

The allegations against PACS Group arise from a report published by Hindenburg Research on November 4, 2024. This report, resulting from an extensive five-month investigation, claimed that the company had manipulated its business practices in a manner that could be described as fraudulent. According to the report, PACS engaged in exploitation of a COVID-era waiver, which purportedly allowed it to submit false Medicare claims.

Key Allegations

False Medicare Claims

The Hindenburg report outlined a scheme whereby PACS reportedly inflated its revenues through fraudulent Medicare claims. The report alleged that PACS had increased its operating and net income by more than 100% by filing these claims incorrectly for respiratory and sensory integration therapies, irrespective of whether patients actually needed these services.

Regulatory Non-Compliance

In addition to claims of fraudulent billing, the report suggested that PACS may have bypassed regulatory measures by 'renting' licenses from third parties, thereby attempting to mislead regulatory authorities. Furthermore, instances of improperly documenting staff qualifications, particularly concerning uncertified nurse aides being listed as certified, were highlighted. These practices were purportedly aimed at achieving favorable staffing ratios and avoiding penalties.

Stock Price Impact

These serious allegations led to significant stock volatility for PACS. Following the release of the Hindenburg report, PACS’s stock plummeted by nearly 28%, closing at $31.01 per share on November 4, 2024. The situation worsened when on November 6, the company postponed its fiscal third-quarter earnings release, stating they were under civil investigation regarding their reimbursement practices. This announcement caused an additional decline, marking the stock drop by 38.76%, landing at $18.09 per share shortly thereafter.

Next Steps for Investors

Shareholders of PACS are advised to remain informed about the lawsuit and take appropriate action if they believe they are eligible to be part of the class. The deadline for filing claims for participation as a Lead Plaintiff is January 13, 2024. Interested shareholders should act swiftly to gather necessary documentation— encompassing personal contact information and details about their investment in PACS securities.

About Pomerantz LLP

Pomerantz LLP is a prominent law firm specializing in corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, the firm has a storied history of advocating for shareholder rights and has recovered billions in damages on behalf of class members in various securities fraud cases.

For those looking for assistance, it is recommended to visit Pomerantz Law Firm's website or reach out directly via email or phone to Danielle Peyton at Pomerantz LLP.

Both current and former shareholders of PACS Group must stay alert and proactive as this situation develops, as it could have lasting implications for the company and its investors.