Core Viewpoint - PACS Group, Inc. is facing a class action lawsuit alleging securities fraud related to its initial public offering and subsequent financial practices, with significant claims of misleading statements and improper billing practices [1][4][5]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Manchin v. PACS Group, Inc., and it allows investors who purchased PACS Group securities between April 11, 2024, and November 5, 2024, to seek lead plaintiff status by January 13, 2025 [1][7]. - The lawsuit alleges that PACS Group and its executives made false statements and failed to disclose critical information regarding their financial practices, particularly concerning Medicare claims [4][5]. Group 2: Financial Impact and Allegations - PACS Group conducted its IPO on April 11, 2024, issuing approximately 21.4 million shares at $21.00 per share, raising about $450 million [3]. - Allegations include that PACS Group engaged in a scheme to submit false Medicare claims, which purportedly accounted for over 100% of its operating and net income from 2020 to 2023 [4][5]. - Following a report by Hindenburg Research on November 4, 2024, which highlighted these allegations, PACS Group's stock price fell by more than 27% [5]. - On November 6, 2024, PACS Group announced a postponement of its third-quarter earnings release and disclosed receiving civil investigative demands from the federal government, leading to an additional stock price drop of 38.7% [6].
PACS INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that PACS Group, Inc. Investors with Substantial Losses Have Opportunity to Lead the PACS Group Class Action Lawsuit