Core Viewpoint - A class action lawsuit has been filed against PACS Group, Inc. following allegations of fraudulent activities related to Medicare revenue, leading to significant stock price declines and market capitalization loss [1][4][5]. Allegations and Impact - Hindenburg Research accused PACS of "systematically scamming taxpayers" by inflating Medicare revenue through misuse of COVID waivers from 2020 to 2023 [2]. - The report claims PACS misclassified individuals who tested positive or were merely exposed to COVID as qualifying for "skilled care," resulting in revenue increases of up to 300% per day, which constituted 100% of PACS' operating income from 2020 to 2023 [3]. - Following the report's release, PACS shares dropped by as much as 30%, equating to a loss of over $2 billion in market capitalization [4]. Company Response - On November 6, 2024, PACS announced a delay in releasing quarterly financials and that an investigation into the allegations was underway, leading to an additional stock price drop of over 38% [5]. - The lawsuit alleges PACS violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by failing to disclose materially adverse facts and making misleading statements in SEC filings during the class period [6]. Legal Proceedings - Investors who purchased PACS stock during the class period (April 11, 2024, to November 5, 2024) and incurred losses are encouraged to participate in the class action lawsuit [7][8].
Barrack, Rodos & Bacine Notifies Shareholders of PACS Global, Inc. (PACS) of a Securities Class Action Lawsuit