Core Viewpoint - The PACS Group, Inc. is facing a class action lawsuit due to allegations of securities fraud related to its initial public offering and subsequent financial practices [1][4][5]. Company Overview - PACS Group operates skilled nursing and assisted living facilities in the United States [3]. IPO Details - PACS Group conducted its IPO on April 11, 2024, issuing approximately 21.4 million shares at an offering price of $21.00 per share, resulting in net proceeds of around $450 million [3]. Allegations of Misconduct - The lawsuit claims that PACS Group engaged in a scheme to submit false Medicare claims, which allegedly accounted for over 100% of its operating and net income from 2020 to 2023 [4]. - It is also alleged that PACS Group billed for unnecessary respiratory and sensory integration therapies to Medicare and falsified documentation related to licensure and staffing [4]. Impact of Allegations - Following the publication of 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 2024 earnings release and disclosed receiving civil investigative demands from the federal government, leading to an additional stock price drop of 38.7% [6]. Legal Process - Investors who purchased PACS Group securities during the class period have until January 13, 2025, to seek appointment as lead plaintiff in the class action lawsuit [1][7].
PACS INVESTOR DEADLINE: PACS Group, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit