PACS Group, Inc.(US:PACS) Prnewswireยท2024-12-20 21:02Core Viewpoint - A class action lawsuit has been filed against PACS Group, Inc. for alleged securities fraud and unlawful business practices, following a report by Hindenburg Research that accused the company of manipulating Medicare claims and falsifying documentation to inflate its financial performance [1][2][3]. Group 1: Allegations and Investigations - Hindenburg Research published a report alleging that PACS abused a COVID-era waiver to submit false Medicare claims, which contributed to over 100% of its operating and net income from 2020 to 2023, misleading investors about its growth and profitability [3]. - The report claimed PACS engaged in unnecessary billing practices for respiratory and sensory integration therapies to Medicare Part B, regardless of clinical need [3]. - Allegations also included falsifying documentation and misrepresenting staffing practices, such as listing unlicensed aides as certified and retroactively adding fake registered nurse hours to meet regulatory requirements [3]. Group 2: Stock Price Impact - Following the release of the Hindenburg report, PACS's stock price dropped by $11.93, or 27.78%, closing at $31.01 per share on November 4, 2024 [3]. - On November 6, 2024, after announcing a postponement of its fiscal third quarter earnings and disclosing federal investigations, PACS's stock fell by $11.45, or 38.76%, closing at $18.09 per share [4]. Group 3: Legal Proceedings - Investors who purchased PACS securities during the class period have until January 13, 2024, to apply to be appointed as Lead Plaintiff in the class action lawsuit [2]. - The lawsuit is being handled by Pomerantz LLP, a firm recognized for its expertise in corporate and securities class litigation [5].