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Faruqi & Faruqi, LLP Securities Litigation Partners James (Josh) Wilson Encourages Investors Who Have Heard Losses Over $50,000 in Group PACS to Contact Him Directly to Discuss Their Options.
If you have a loss of more than $50,000 in PACS team between (a) common stock pursuant to and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s April 11, 2024 initial public offering (“IPO” or “Offering”); and/or (b) all persons and entities that have purchased or acquired PACS common stock pursuant to, or attributable to, or both, the SPO Materials (as defined herein) issued in connection with PACS’s public offering of September 2024 (“SPO”); and/or (c) securities between 11 April 2024 and 5 November 2024 inclusive (the “Class Period”). and I would like to discuss your legal rights, call Faruqi and Faruqi’s partners Josh Wilson live to 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 leading national security law firm, is investigating potential claims against PACS Group, Inc . (“PACS Group” or the “Company”) (NYSE: PACS) and reminds investors of January 13, 2025 deadline seeking the role of lead plaintiff in a federal class action against the Company.
Faruqi & Faruqi is a leading national security law firm with offices in New York, Pennsylvania, California and Georgia. The firm has raised hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As described below, the complaint alleges that the Company and its directors violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that the Company engaged in a “scheme” to file false Medicare claims. which “drove more than 100% of PACS operations and revenue from 2020 – 2023”; (2) that the Company engaged in a “scheme” of “paying for thousands of unnecessary respiratory and medical care treatments to Medicare”; (3) that the Company engaged in a scheme to falsify documents related to the license and employment of employees; and (4) that, as a result of the foregoing, the Defendants’ positive statements regarding the Company’s business, operations, and prospects were materially misleading and/or had no reasonable basis .
On April 11, 2024, PACS Group conducted its IPO, selling 21,428,572 shares of common stock at a price of $21.00 per share, raising approximately $450 million.
On September 3, 2024, PACS filed with the SEC a registration statement for the secondary offering on Form S-1 (the “SPO Registration Statement”). On September 6, 2024, PACS filed with the SEC a prospectus for SPO Form 424B4, which was part of SPO’s Registration Statement (the “SPO Prospectus” together with SPO’s Registration Statement and accompanying custodian instruments or published in these forms, “SPO Materials.” PACS issued 2,777,778 units of common stock to $36.25 per share for $100.7 million in cash to the Company Through the SPO, PACS insiders also sold 16,256,704 shares of common stock at $36.25 per share for a profit of $589.3 million.
On November 4, 2024, Hindenburg Research published a report based on a 5-month investigation that included interviews with 18 former PACS Group employees, competitors, and an analysis of more than 900 PACS agency expense reports. The report says the Company “exploited the COVID-19 breach” in a “scheme” that included submitting false Medicare claims that “paid more than 100% of PACS’ operating revenue from 2020 – 2023, enabling PACS to IPO in early 2024 with the illusion of proper growth and profitability.” The report also alleges the Company engaged in a revenue-saving scheme by “billing(ing) thousands of unnecessary respiratory and hearing aid treatments to Medicare Part B regardless of medical need or outcomes.” The report also alleges widespread falsification of documents, including involvement in “a scheme in which PACS attempts to deceive authorities by ‘hiring’ third-party licenses to ‘hang’ on premises ” and “employs unlicensed managers or managers. Many buildings exceed state-mandated limits.” Similarly, the report alleges the Company is involved in a scheme related to the licensing and practice of nurses, in which “PACS secretly lists non-certified nursing assistants (NAs) as certified in the system , with the clear intention of manipulating the workers’ standards” and “adding fakes”. RN Hours” in order to “meet minimum staffing requirements, strengthen star ratings, and avoid costly penalties.”
In this news, the Company’s share price decreased by $11.93 or 27.78%, to close at $31.01 per share on November 4, 2024, in unusually heavy trading volume.
Then, on November 6, 2024, before the market opened, the Company announced that it would postpone its earnings for the third quarter of 2024. The Company also disclosed that it “received public inquiry requests from ‘ federal government regarding the Company’s refund and transfer procedures that may or may not be related to third party reporting this week.”
In this news, the Company’s share price fell by $11.45 or 38.76%, to close at $18.09 per share on November 6, 2024, in unusually heavy trading volume. At the beginning of this action, PACS Group’s stock traded at less than $ 18.09 in total, a decrease of more than 13.9% from the $ 21 per share IPO price.
The lead plaintiff appointed by the court is the investor with the greatest financial interest in the relief sought by a reasonable and common class of class members conducting and overseeing the case on behalf of the putative class. Any member of the arbitration panel may have the Court act as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent panel member. Your ability to participate in any recovery is not affected by the decision to serve as the lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information about PACS Group’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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To view the source version of this release, please visit https://www.newsfilecorp.com/release/236729
