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

Pomerantz Law Firm Files Class Action Lawsuit Against PACS Group, Inc.

Pomerantz LLP, a prominent law firm that specializes in securities class action litigation, has announced a class action lawsuit against PACS Group, Inc. (NYSE: PACS). This legal action specifically seeks to address concerns from shareholders who may have experienced financial losses due to alleged fraudulent activities and unlawful business practices conducted by the company.

The firm is urging investors who held PACS securities during a certain period to reach out for assistance, highlighting the need for these individuals to secure their rights. As part of this process, shareholders are encouraged to contact attorney Danielle Peyton at Pomerantz LLP. They should provide essential details, including their contact information and the number of shares they purchased.

Background of the Case

The catalyst behind this class action lawsuit stems from recent reports published by Hindenburg Research. This investigation lasted five months and involved interviews with several former PACS employees and analysis of over 900 facility cost reports. The findings portrayed PACS in a negative light, alleging that the company had taken advantage of waivers put in place during the COVID-19 pandemic. Specifically, Hindenburg's report suggests that PACS engaged in a scheme to submit false Medicare claims, which significantly inflated its operating and net income from 2020 to 2023. This fraudulent activity purportedly paved the way for an IPO that presented an illusion of legitimate growth.

Furthermore, the report accused PACS of misrepresenting various procedures and patient needs to generate revenue. Allegations included unnecessary therapies billed to Medicare, falsification of documentation, and execution of deceptive practices around licensing and the employment of nursing staff. In essence, PACS was accused of manipulating their operations to enhance their financial standing artificially.

Impact on Shareholders

The fallout from Hindenburg's revelations has been considerable and immediate. Following the publication of the report, PACS's stock saw a dramatic decline, falling by approximately 27.78% on November 4, 2024. This drop was exacerbated when the company postponed its fiscal third quarter earnings release and revealed that it was under investigation by federal authorities concerning its reimbursement practices. As a result, the stock further plummeted, closing at $18.09 following the second announcement—an unsettling 38.76% decrease.

This turmoil has left many investors feeling vulnerable and uncertain about their financial interests in PACS Group, Inc. Pomerantz LLP aims to represent these shareholders in their pursuit of restitution for their losses incurred through what they believe to be securities fraud and corporate misconduct.

Joining the Class Action

Pomerantz LLP is calling on affected PACS shareholders to get involved. The deadline for individuals wishing to be appointed as Lead Plaintiff in the case is January 13, 2024. Interested parties can obtain a copy of the complaint and more information about the class action directly from the firm's website.

In summation, the class action lawsuit against PACS Group, Inc. illustrates a significant moment for corporate accountability and shareholder protection. Pomerantz LLP stands ready to advocate for those impacted by these alleged illegal practices and to pursue justice on their behalf. With an esteemed history of recovering damages for investors, Pomerantz is keen on continuing its legacy of ensuring that rights are upheld within the corporate sector.

For further inquiries or to participate in the class action, investors can reach out to Pomerantz LLP via the contact details provided. The firm's commitment to fighting against securities fraud remains strong, and it emphasizes the importance of collective action in addressing corporate misconduct.