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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In PACS Group To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $50,000 successful PACS Group betwixt (a) communal banal pursuant and/or traceable to the registration connection and prospectus (collectively, the "Registration Statement") issued successful transportation with the Company's April 11, 2024 archetypal nationalist offering ("IPO" oregon the "Offering"); and/or (b) each persons and entities that purchased oregon different acquired PACS communal banal pursuant, oregon traceable, oregon both, to the SPO Materials (as defined herein) issued successful transportation with PACS' September 2024 secondary nationalist offering (the "SPO"); and/or (c) securities betwixt April 11, 2024 and November 5, 2024 inclusive (the "Class Period") and would similar to sermon your ineligible rights, telephone Faruqi & Faruqi spouse Josh Wilson straight at 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York--(Newsfile Corp. - January 11, 2025) - Faruqi & Faruqi, LLP, a starring nationalist securities instrumentality firm, is investigating imaginable claims against PACS Group, Inc. ("PACS Group" oregon the "Company") (NYSE: PACS) and reminds investors of the January 13, 2025 deadline to question the relation of pb plaintiff successful a national securities people enactment that has been filed against the Company.
Faruqi & Faruqi is simply a starring nationalist securities instrumentality steadfast with offices successful New York, Pennsylvania, California and Georgia. The steadfast has recovered hundreds of millions of dollars for investors since its founding successful 1995. See www.faruqilaw.com.
As elaborate below, the ailment alleges that the Company and its executives violated national securities laws by making mendacious and/or misleading statements and/or failing to disclose that: (1) that the Company engaged successful a "scheme" to taxable mendacious Medicare claims which "drove much than 100% of PACS' operating and nett income from 2020 - 2023"; (2) that the Company engaged successful a "scheme" to "bill thousands of unnecessary respiratory and sensory integration therapies to Medicare"; (3) that the Company engaged successful a strategy to falsify documentation related to licensure and staffing; and (4) that, arsenic a effect of the foregoing, Defendants' affirmative statements astir the Company's business, operations, and prospects were materially misleading and/or lacked a tenable basis.
On April 11, 2024, PACS Group conducted its IPO, selling 21,428,572 shares of communal banal astatine a terms of $21.00 per share, received nett proceeds of astir $450 million.
On September 3, 2024, PACS filed with the SEC a registration connection for a secondary offering connected Form S-1 (the "SPO Registration Statement"). On September 6, 2024, PACS filed with the SEC a prospectus for the SPO connected Form 424B4, which formed portion of the SPO Registration Statement (the "SPO Prospectus" and unneurotic with the SPO Registration Statement and attendant materials filed oregon published with these forms, the "SPO Materials." PACS issued 2,777,778 shares of communal banal astatine $36.25 per stock for proceeds of $100.7 cardinal to the Company. Through the SPO, PACS insiders besides sold 16,256,704 shares of communal banal astatine $36.25 per stock for proceeds of $589.3 million.
On November 4, 2024, Hindenburg Research published a study based connected a 5-month probe that included interviews with 18 erstwhile PACS Group employees, competitors, and an investigation of much than 900 PACS installation outgo reports. The study alleged the Company had "abused a COVID-era waiver" successful a "scheme" that progressive falsely submitting mendacious Medicare claims which "drove much than 100% of PACS' operating and nett income from 2020 - 2023, enabling PACS to IPO successful aboriginal 2024 with the illusion of morganatic maturation and profitability." The study further alleged the Company engaged successful a strategy to support gross by "bill[ing] thousands of unnecessary respiratory and sensory integration therapies to Medicare Part B careless of objective request oregon outcomes." The study besides alleged a wide signifier of falsifying documentation, including by engaging successful a "scheme whereby PACS attempts to fool regulators by 'renting' licenses from 3rd parties to 'hang' connected buildings" and past "either employs unlicensed administrators oregon has administrators negociate aggregate buildings successful excess of authorities mandated limits." Similarly, the study alleges the Company engaged successful a strategy related to licensure and staffing of nurses, whereby "PACS secretly lists uncertified caregiver aides (NAs) arsenic certified successful the system, successful an evident strategy to cheat staffing ratios" and "retroactively adhd fake RN hours" successful bid "to conscionable minimum staffing requirements, boost prima ratings, and debar costly penalties."
On this news, the Company's stock terms fell $11.93 oregon 27.78%, to adjacent astatine $31.01 per stock connected November 4, 2024, connected unusually dense trading volume.
Then, connected November 6, 2024, earlier the marketplace opened, the Company announced that it would postpone its fiscal 3rd 4th 2024 net release. The Company further disclosed it had "received civilian investigative demands from the national authorities regarding the Company's reimbursement and referral practices that whitethorn oregon whitethorn not beryllium related to this week's third-party report."
On this news, the Company's stock terms fell $11.45 oregon 38.76%, to adjacent astatine $18.09 per stock connected November 6, 2024, connected unusually dense trading volume. By the commencement of this action, PACS Group banal has traded arsenic debased arsenic $18.09 per share, a much than 13.9% diminution from the $21 per stock IPO price.
The court-appointed pb plaintiff is the capitalist with the largest fiscal involvement successful the alleviation sought by the people who is capable and emblematic of people members who directs and oversees the litigation connected behalf of the putative class. Any subordinate of the putative people whitethorn determination the Court to service arsenic pb plaintiff done counsel of their choice, oregon whitethorn take to bash thing and stay an absent people member. Your quality to stock successful immoderate betterment is not affected by the determination to service arsenic a pb plaintiff oregon not.
Faruqi & Faruqi, LLP besides encourages anyone with accusation regarding PACS Group's behaviour to interaction the firm, including whistleblowers, erstwhile employees, shareholders and others.
To larn much astir the PACS Group people action, spell to www.faruqilaw.com/PACS oregon call Faruqi & Faruqi spouse Josh Wilson straight at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Attorney Advertising. The instrumentality steadfast liable for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results bash not warrant oregon foretell a akin result with respect to immoderate aboriginal matter. We invited the accidental to sermon your peculiar case. All communications volition beryllium treated successful a confidential manner.
To presumption the root mentation of this property release, delight sojourn https://www.newsfilecorp.com/release/236729
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