Core Viewpoint - PACS Group, Inc. and its executives are facing a securities class action lawsuit for alleged violations of U.S. securities laws, following a report that claims the company engaged in fraudulent practices related to Medicare [1][2][3]. Group 1: Allegations and Investigations - The class action lawsuit alleges that PACS made false and misleading statements during its IPO and throughout the class period, failing to disclose fraudulent activities such as submitting false Medicare claims and billing for unnecessary therapies [2][3]. - Hindenburg's report, which triggered the lawsuit, claims PACS exploited taxpayer-funded healthcare programs and engaged in practices like falsifying patient records and circumventing regulatory oversight [3]. - Hagens Berman has initiated an investigation into PACS's business practices and is seeking to represent investors who suffered losses due to these alleged misconducts [5][6]. Group 2: Market Reaction - Following the release of Hindenburg's report, PACS Group's share price dropped by $11.93, a decline of over 27% [4]. - On November 6, 2024, PACS disclosed that it received civil investigative demands from the federal government, leading to a further decline in share price by $11.45, or over 38%, closing at $18.09, significantly below the IPO price of $21 [4][5].
PACS Group (PACS) Faces Securities Class Action– Hagens Berman