Core Viewpoint - A lawsuit has been filed against PACS Group, Inc. and its senior executives for potential violations of federal securities laws, alleging misconduct related to the company's financial practices and Medicare benefits access [1][2][3]. Group 1: Lawsuit Details - 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., No. 24-cv-08636 [2]. - Investors have until January 13, 2025, to request to lead the case [2]. Group 2: Allegations Against PACS - PACS is alleged to be one of the largest operators of skilled nursing facilities in the U.S., claiming to have a successful turnaround strategy to enhance profitability [3]. - The complaint asserts that PACS's turnaround was based on illicitly accessing Medicare benefits for thousands of patients [3]. - Hindenburg Research published a report alleging that PACS abused a COVID-era waiver to improperly access Medicare benefits, which significantly inflated the company's operating and net income from 2020 to 2023 [4]. Group 3: Financial Impact - Following the allegations, PACS's stock price experienced a significant decline, dropping 27.8% from $42.94 to $31.01 per share on November 4, 2024, and further declining 38.8% from $29.54 to $18.09 per share on November 6, 2024 [4].
PACS COURT DEADLINE: PACS Group Investors that Lost Money may have been Affected by Fraud – Contact BFA Law by Monday's Legal Deadline (NYSE:PACS)