Core Insights - PACS Group, a nursing home operator, has seen a dramatic decline in its stock price, losing 70% of its market capitalization since early November 2024 due to allegations of deceptive Medicare billing practices and a federal investigation [1][5][6] Group 1: Company Performance - PACS Group's stock initially surged after its IPO in April 2024, with shares doubling from the $21 offering price within seven months [2] - The company's stock price fell by over 27% on November 4, 2024, following a report from Hindenburg Research, which accused PACS of various improprieties [4][3] - Following the release of the Hindenburg report, PACS's stock dropped an additional 38% on November 6, closing at $18.09, below its initial offering price [5] Group 2: Allegations and Investigations - Hindenburg Research's report claimed PACS improperly accessed Medicare funds, fabricated patient records, and engaged in fraudulent licensing practices [3] - PACS received civil investigative demands from federal authorities regarding its reimbursement and referral practices, corroborating some allegations from the Hindenburg report [5] - A securities class-action lawsuit has been filed against PACS, alleging the company misled investors about its turnaround strategy, which was purportedly based on improper Medicare benefit acquisitions [6] Group 3: Legal and Regulatory Actions - Hagens Berman, a shareholder rights firm, is investigating PACS for potential violations of U.S. securities laws and is urging affected investors to come forward [2][7] - The investigation focuses on PACS's alleged misuse of Medicare funds and manipulation of patient records, raising concerns about potential fraud [7]
Medicare Fraud Allegations Cast Shadow Over PACS Group (PACS) - Hagens Berman PACS Investors with Losses Encouraged to Contact the Firm Before Jan. 13, 2025 Deadline