Kaskela Law LLC is investigating PACS Group, Inc. (NYSE: PACS) (“PACS”) on behalf of the company’s long-term investors.
Recently a federal 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 December 16, 2024 (the “Wrongdoing Period”). According to the complaint, during the Wrongdoing Period, PACS and several of the company’s 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, on November 4, 2024, Hindenburg Research published a report titled “PACS Group: How to Become A Billionaire In The Skilled Nursing Industry By Systematically Scamming Taxpayers.” That Report “revealed PACS’s COVID-19 Waiver scheme, the Medicare Part B scheme, the licensing scheme, and other misconduct.” Following the release of the Hindenburg Report, shares of PACS’ stock declined approximately 40% in value, to close on November 6, 2024 at $ 18.09 per share.
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.
Current PACS shareholders who purchased or acquired their PACS shares prior to November 5, 2024 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) for additional information about this investigation and their legal rights and options at 484-229-0750, by email at [email protected], or by completing the form on this page.