Kaskela Law LLC is investigating PACS Group, Inc. (NYSE: PACS) (“PACS”) on behalf of the company’s long-term shareholders.

Recently a securities fraud complaint was filed against PACS on behalf of certain investors who purchased shares of the company’s stock between April 11, 2024 and November 5, 2024.  According to the complaint, during that time period, PACS and several of the company’s executive officers made a series of materially false and misleading statements and omissions to investors regarding PACS’ rapid growth and profitability, primarily driven by the company’s manipulation of billing practices that exploited taxpayer-funded programs.

As further detailed in the complaint, “the truth about PACS’ illicit practices, heightened regulatory risks, unsustainable revenues, and other undisclosed issues began to emerge on November 4, 2024, when Hindenburg Research (‘Hindenburg’) published a report concerning PACS. This report detailed several allegations against the company, including evidence of PACS’ misuse of COVID waivers to inflate Medicare reimbursements as well as other unsustainable revenue practices which misrepresented the company’s financial health to investors.”  Following this news, shares of the company’s stock fell $11.93 per share, or over 27% in value, to close at $31.01 per share on November 4, 2024.

Then, on November 6, 2024, before the opening of trading, the company announced that it would delay the release of its third-quarter 2024 financial results. PACS stated that the postponement was due to the company’s Audit Committee conducting an investigation into recent third-party allegations concerning its reimbursement and referral practices. PACS also disclosed that it had received civil investigative demands from the federal government regarding these practices, which it stated may or may not have been related to the recent third-party report.  Following this disclosure, shares of the company’s stock fell an additional $11.45 per share, or over 38% in value, to close at $18.09 per share on November 6, 2024.

The investigation seeks to determine whether the members of PACS’ board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.

PACS shareholders who purchased or acquired their shares prior to April 11, 2024 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, to receive additional information about this investigation and their legal rights and options.

CONTACT:

KASKELA LAW LLC
D. Seamus Kaskela, Esq.
([email protected])
Adrienne Bell, Esq.
([email protected])
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(484) 229 – 0750