PACS Court Notice: January 13 Deadline for Investors in Securities Fraud Class Action

NEW YORK, Dec. 06, 2024 (GLOBE NEWSWIRE) -- Bleichmar Fonti & Auld LLP, a leading securities law firm, has announced the filing of a lawsuit against PACS Group, Inc. (NYSE:PACS) and some of its senior executives for possible violations of federal securities laws.

If you have invested in PACS, it is important to seek additional information by visiting their website: BFA Law.

Investors who have suffered losses have until January 13, 2025, to request to be appointed as a lead plaintiff in this case. The complaint includes claims under various sections of the Securities Act of 1933 and the Securities Exchange Act of 1934, and it is being heard in the U.S. District Court for the Southern District of New York. The case is titled Manchin v. PACS Group, Inc., et al., No. 24-cv-08636.

Overview of the PACS Lawsuit

The lawsuit alleges that PACS Group, one of the largest operators of skilled nursing facilities in the United States, misled its shareholders regarding its profitability strategy. Although PACS claimed to have a successful turnaround strategy for its nursing facilities, the lawsuit suggests that this success was due to unlawful access to Medicare benefits for thousands of patients.

A significant report published by investment research firm Hindenburg Research on November 4, 2024, raised serious questions about PACS's operations. The firm conducted a five-month investigation that included interviews with 18 former PACS employees and a review of over 900 facility cost reports. Hindenburg accused PACS of exploiting a COVID-era waiver to improperly qualify thousands of patients for Medicare benefits, which they claim allowed the company to falsely present significant growth and profitability.

Subsequently, on November 6, 2024, PACS announced it would delay its Q3 earnings report, indicating it had received civil investigative demands from the federal government regarding its reimbursement and referral practices, which may relate to the report issued by Hindenburg Research.

Impact on Stock Price

The public disclosure of these allegations caused PACS's stock price to plummet. On November 4, 2024, the stock fell by 27.8%, dropping from $42.94 per share on November 1 to $31.01 per share. Following the announcement of the investigation, the stock continued to decline, closing at $18.09 per share on November 6, a drop of 38.8% from the previous day's close.

If you have experienced losses related to your investment in PACS, you may want to take action. More information is available at BFA Law.

Your Options

Investors in PACS may have legal strategies available to them. It is encouraged to submit your information to the law firm for further assistance. Representation will be offered on a contingency fee basis, which means there are no upfront costs for shareholders. The firm will seek court approval for any potential fees and expenses.

Visit BFA Law to submit your information.

About Bleichmar Fonti & Auld LLP

Bleichmar Fonti & Auld LLP is a well-respected international law firm that represents plaintiffs in securities class actions and shareholder lawsuits. Named among the top plaintiff law firms by ISS SCAS in 2023, the firm's attorneys have been recognized as leaders in the plaintiff bar by Law360 and SuperLawyers. The firm has successfully recovered significant settlements, including over $900 million from Tesla, Inc.'s Board of Directors and $420 million from Teva Pharmaceutical Industries.

For more information about the firm and its achievements, visit BFA Law.

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