PACS Group Investors Urged to Join Class Action for Substantial Losses

PACS Group Investor Notice

Overview

Unfortunate news has emerged for the investors of PACS Group, Inc. (NYSE: PACS) as Robbins Geller Rudman & Dowd LLP has announced significant developments in the wake of severe losses experienced by shareholders. Those who purchased PACS securities between April 11, 2024, and November 5, 2024, are encouraged to consider leading a class action lawsuit.

Class Action Details

The class action arises from PACS's initial public offering (IPO) held on April 11, 2024, where approximately 21.4 million shares were sold at $21.00 each. As alleged in a lawsuit titled Manchin v. PACS Group, Inc., there are serious accusations against PACS Group and its executives for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.

Allegations of Misconduct

According to the complaint, it is suggested that PACS engaged in a wrongful scheme involving the submission of false Medicare claims. This alleged conduct reportedly contributed to over 100% of PACS's operating and net income from 2020 to 2023. Furthermore, it is claimed that the company billed Medicare for unnecessary treatments, thus inflating earnings artificially.

On November 4, 2024, a damaging report by Hindenburg Research corroborated these allegations, revealing that PACS's growth was primarily driven by unethical Medicare billing practices during the COVID-19 pandemic. In response to these revelations, PACS Group's stock plummeted by over 27%.

The situation worsened shortly after, with an announcement on November 6, 2024, stating that the firm would delay its third-quarter earnings release due to civil investigations from federal authorities, leading to an additional plunge of approximately 38.7% in stock price.

Lead Plaintiff Process

If you are one of the investors who suffered significant losses during the affected period and are interested in leading this class action, you will need to take action before January 13, 2025. The Private Securities Litigation Reform Act allows a person with the largest financial stake in the case to act as the lead plaintiff.

The lead plaintiff is responsible for directing the lawsuit, representing the interests of other class members, and may choose a law firm to prosecute the case on their behalf. Importantly, participation as a lead plaintiff is not a requirement for potential recovery; all investors may share in any victory regardless of their role in the lawsuit.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is renowned for its representation of investors in securities fraud cases. With a remarkable track record, the firm has recovered millions for its clients and played a key role in some of the largest securities class action settlements, including $7.2 billion in the Enron Corp. case. For more detailed inquiries, affected individuals can reach out to Robbins Geller attorneys via phone or email to get further guidance on how to proceed.

Ending Note

This situation poses noteworthy implications for PACS Group, its investors, and the nursing and healthcare industry as a whole. Stakeholders should stay informed about developments in this case. For additional information, interested parties should consult the legal experts involved in this ongoing situation.

For more details or inquiries regarding the class action lawsuit, consider visiting the Robbins Geller website or contacting their office directly.