OAKLAND, Calif.--(BUSINESS WIRE)--Shares of PACS Group, Inc. (“PACS Group”) plunged over 42% in intraday trading on Wednesday, November 6, 2024, after it disclosed a federal investigation into its reimbursement and referral practices. Previously, it dropped 27% on Monday, November 4, 2024, following a Hindenburg Research report accusing the company of “systematically scamming taxpayer-funded healthcare programs” and operating a scheme to give the illusion of growth and profitability. Gibbs Law Group is investigating a potential PACS Group (NYSE:PACS) Securities Class Action Lawsuit on behalf of shareholders who lost money in PACS Group, Inc.
What Should PACS Group Investors Do?
If you invested in PACS Group, visit our website, or call us toll-free at (888) 410-2925 to get more information and discuss how you may be able to recover your losses. Our investigation concerns whether PACS Group has violated federal securities laws by providing false or misleading statements to investors.
What is the PACS Group Lawsuit Investigation About?
On November 6, 2024, PACS Group disclosed that it would delay the release of its 2024 Q3 earnings results amidst a government investigation into its reimbursement and referral practices.
This announcement followed a Hindenburg Research report published on November 4, 2024, alleging that PACS Group employed a “turnaround” strategy of “transforming poorly performing skilled nursing facilities into cash spigots” by “systematically scamming taxpayer-funded healthcare programs.” The report further claims that PACS Group tried to return to COVID-level profitability “by billing thousands of unnecessary respiratory and sensory integration therapies to Medicare Part B regardless of clinical need or outcomes.” Hindenburg Research estimates that this scheme “drove more than 100% of PACS’ operating and net income from 2020 – 2023, enabling PACS to IPO in early 2024 with the illusion of legitimate growth and profitability.”
Following this news, shares of PACS Group plummeted over 42% in intraday trading on November 6, 2024, causing significant harm to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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