PACS Group, Inc.(US:PACS) GlobeNewswire News Roomยท2024-12-22 13:40Core Viewpoint - A lawsuit has been filed against PACS Group, Inc. for potential violations of federal securities laws, following allegations of fraudulent practices related to Medicare benefits [13]. Group 1: Lawsuit Details - Investors have until January 13, 2025, to request court appointment to lead the case against PACS Group, Inc. [1] - The lawsuit is pending in the U.S. District Court for the Southern District of New York, titled Manchin v. PACS Group, Inc., et al. [1] - The complaint asserts claims under various sections of the Securities Act of 1933 and the Securities Exchange Act of 1934 [1]. Group 2: Allegations Against PACS - Hindenburg Research published a report alleging that PACS abused a COVID-era waiver to inappropriately access Medicare benefits for thousands of patients [2]. - The report claims that this scheme accounted for over 100% of PACS' operating and net income from 2020 to 2023, misleading investors about the company's growth and profitability [2]. - PACS is described as one of the largest operators of skilled nursing facilities in the U.S., with claims of a "turnaround" strategy that was allegedly based on illicit practices [8]. Group 3: Stock Price Impact - Following the allegations, PACS stock experienced a significant decline, falling 27.8% from $42.94 on November 1, 2024, to $31.01 on November 4, 2024 [9]. - The stock price further dropped 38.8% from $29.54 on November 5, 2024, to $18.09 on November 6, 2024 [9]. Group 4: Company Response - On November 6, 2024, PACS announced the postponement of its Q3 earnings and disclosed that it had received civil investigative demands from the federal government regarding its reimbursement and referral practices [15].