#United States #New York #PACS Group #investors #Faruqi & Faruqi

Investigation of Claims Against PACS Group

As the deadline for investor action looms, prominent national securities law firm, Faruqi & Faruqi, LLP, is urging individuals who have incurred losses exceeding $50,000 in PACS Group, Inc. (NYSE: PACS) to come forward. The investigation focuses on potential securities law violations, particularly surrounding the company's financial practices and statements made prior to its recent initial public offering (IPO) and subsequent secondary public offering (SPO).

Background

PACS Group, which specializes in healthcare services, launched its IPO on April 11, 2024, issuing over 21 million shares at $21 each. Despite raising around $450 million, the firm later faced scrutiny following allegations that it engaged in deceptive practices. This included the submission of fraudulent Medicare claims purportedly inflating its profits markedly from 2020 to 2023.

On November 4, 2024, allegations surfaced from an investigative report by Hindenburg Research, which claimed that PACS had been involved in schemes billing for unnecessary services and falsely submitting claims, thus misleading investors about its operational integrity. The report suggested that the company had exploited COVID-era waivers to boost its financial performance artificially, allowing it to present a facade of healthy growth and profitability while allegedly engaging in unethical billing practices.

The fallout from these revelations was significant. Following the report's release, PACS experienced a dramatic drop in its stock price, tumbling by nearly 28% to $31.01. This trend continued on November 6, 2024, when the company announced the postponement of its fiscal third-quarter earnings, further tanking its share price by nearly 39%.

Legal Actions

Faruqi & Faruqi has initiated a thorough inquiry into PACS Group’s practices under the guidance of law firm partner, James (Josh) Wilson. The investigation is particularly focused on whether PACS Group misled investors with false statements about its business operations, which may have inflated its stock price unjustly. Investors who bought shares between the issuing of the IPO and the recent downturn, or who acquired shares as part of the SPO, are specifically invited to contact the firm.

As a reminder, investors have until January 13, 2025, to file for the role of lead plaintiff in this federal class action lawsuit. This means that those affected have a limited time frame to assert their legal rights. The lead plaintiff will represent the interests of all affected investors and drive the litigation process. The law office is open to any individuals with relevant information or insight about PACS Group's operations as part of their investigation.

Conclusion

In a climate where investor confidence can shift rapidly based on company practices and market transparency, firms like Faruqi & Faruqi play a crucial role in advocating for accountability among publicly traded companies. For those affected by the events surrounding PACS Group, this investigation represents an opportunity to seek potential legal recourse. Anyone interested in pursuing claims or seeking more information is encouraged to reach out to the firm directly via the provided contact numbers. Those with information or tips concerning PACS Group's practices are especially welcome to contribute, ensuring a comprehensive examination of the issue.

To follow the latest developments surrounding PACS Group's legal situation and to learn more about participating in the class action, individuals can visit Faruqi & Faruqi's website or contact Josh Wilson directly at 877-247-4292.