PACS Group, Inc. Investors: January 13, 2025 Filing Deadline in Securities Class Action – Contact Lieff Cabraser
PACS Group, a senior care facilities operator, faces a securities class action lawsuit with a January 13, 2025 deadline for lead plaintiff applications. The lawsuit covers investors who acquired PACS stock between April 11, 2024, and November 5, 2024, including those who purchased shares during the company's IPO and SPO.
The lawsuit alleges that PACS made false statements and failed to disclose a scheme to submit fraudulent Medicare claims, which reportedly generated over 100% of the company's operating income from 2020-2023. Following a Hindenburg Research report on November 4, 2024, revealing alleged fraudulent practices, PACS stock fell 27.78% to $31.01. The stock further dropped 38.76% to $18.09 on November 6, 2024, after the company postponed Q3 earnings and disclosed federal civil investigative demands.
PACS Group, un operatore di strutture per anziani, si trova di fronte a una causa legale collettiva sui titoli, con una scadenza per le domande di lead plaintiff fissata al 13 gennaio 2025. La causa riguarda gli investitori che hanno acquisito azioni di PACS tra l'11 aprile 2024 e il 5 novembre 2024, inclusi coloro che hanno acquistato azioni durante l'IPO e lo SPO della società.
La causa sostiene che PACS abbia fatto dichiarazioni false e non abbia rivelato un piano per presentare richieste fraudolente a Medicare, che avrebbero generato oltre il 100% del reddito operativo della società dal 2020 al 2023. A seguito di un report della Hindenburg Research del 4 novembre 2024, che rivelava presunti pratiche fraudolente, il titolo PACS è crollato del 27,78% a $31,01. Il titolo è ulteriormente sceso del 38,76% a $18,09 il 6 novembre 2024, dopo che la società ha rinviato i guadagni del terzo trimestre e ha rivelato richieste di indagine civile da parte delle autorità federali.
PACS Group, un operador de instalaciones de atención para personas mayores, enfrenta una demanda colectiva de valores, con una fecha límite del 13 de enero de 2025 para las solicitudes de demandante principal. La demanda cubre a los inversionistas que adquirieron acciones de PACS entre el 11 de abril de 2024 y el 5 de noviembre de 2024, incluidos aquellos que compraron acciones durante la OPI y la SPO de la compañía.
La demanda alega que PACS hizo declaraciones falsas y no reveló un esquema para presentar reclamaciones fraudulentas de Medicare, que generaron supuestamente más del 100% de los ingresos operativos de la compañía de 2020 a 2023. Tras un informe de Hindenburg Research el 4 de noviembre de 2024, que reveló presuntas prácticas fraudulentas, las acciones de PACS cayeron un 27,78% a $31,01. El valor de las acciones cayó aún más un 38,76% a $18,09 el 6 de noviembre de 2024, después de que la compañía pospuso los ingresos del tercer trimestre y reveló demandas de investigación civil federal.
PACS 그룹은 노인 요양 시설 운영자로, 2025년 1월 13일까지 원고 신청 마감일이 있는 증권 집단 소송에 직면해 있습니다. 이 소송은 2024년 4월 11일부터 2024년 11월 5일 사이에 PACS 주식을 취득한 투자자들을 대상으로 하며, 회사의 IPO와 SPO 동안 주식을 구매한 사람들을 포함합니다.
소송에서는 PACS가 허위 진술을 하고 2020년부터 2023년까지 회사 운영 수익의 100% 이상을 생성한 것으로 보고된 Medicare 사기 청구를 제출하기 위한 계획을 공개하지 않았다고 주장하고 있습니다. 2024년 11월 4일, Hindenburg Research의 보고서가 의심되는 사기 행태를 폭로한 후, PACS 주가는 27.78% 하락하여 $31.01이 되었습니다. 이어서 2024년 11월 6일, 회사가 3분기 실적 발표를 연기하고 연방 민사 조사 요구를 공개한 후 주가는 38.76% 하락하여 $18.09가 되었습니다.
PACS Group, un opérateur d'établissements de soins pour personnes âgées, fait face à un recours collectif en valeurs mobilières, avec une date limite pour les demandes de plaignant principal fixée au 13 janvier 2025. Le recours concerne les investisseurs qui ont acquis des actions PACS entre le 11 avril 2024 et le 5 novembre 2024, y compris ceux qui ont acheté des actions lors de l'IPO et de l'SPO de la société.
La plainte allègue que PACS a fait des déclarations fausses et n'a pas révélé un schéma consistant à soumettre de fausses demandes à Medicare, qui auraient généré plus de 100 % des revenus d'exploitation de l'entreprise de 2020 à 2023. À la suite d'un rapport de Hindenburg Research du 4 novembre 2024, révélant des pratiques présumées frauduleuses, l'action PACS a chuté de 27,78 % à 31,01 $. L'action a encore baissé de 38,76 % à 18,09 $ le 6 novembre 2024, après que la société a reporté les résultats du troisième trimestre et a divulgué des demandes d'enquête civile fédérale.
PACS Group, ein Betreiber von Seniorenpflegeeinrichtungen, sieht sich einer Sammelklage wegen Wertpapieren gegenüber, deren Frist für Hauptklagen am 13. Januar 2025 endet. Die Klage richtet sich gegen Investoren, die zwischen dem 11. April 2024 und dem 5. November 2024 PACS-Aktien erworben haben, einschließlich derjenigen, die während des IPO und SPO des Unternehmens Aktien gekauft haben.
Die Klage behauptet, dass PACS falsche Aussagen gemacht und ein Schema zur Einreichung von betrügerischen Medicare-Anträgen nicht offengelegt hat, das angeblich über 100% des Betriebsergebnisses des Unternehmens von 2020 bis 2023 generiert hat. Nach einem Bericht von Hindenburg Research am 4. November 2024, der mutmaßliche betrügerische Praktiken aufdeckte, fiel der PACS-Aktienkurs um 27,78% auf 31,01 $. Am 6. November 2024 fiel der Kurs aufgrund der Verschiebung der Q3-Ergebnisse und der Offenlegung von Anforderungen an bundesstaatliche Ziviluntersuchungen um weitere 38,76% auf 18,09 $.
- None.
- Alleged Medicare fraud scheme that reportedly generated over 100% of operating income (2020-2023)
- Stock price dropped 27.78% following Hindenburg Research report
- Additional 38.76% stock price decline after postponing Q3 earnings
- Federal civil investigation into reimbursement and referral practices
- Multiple allegations of fraudulent practices including false Medicare claims and staffing documentation
Insights
The allegations against PACS represent a severe securities fraud case with potentially devastating implications. The dual claims under both the Securities Act of 1933 and Exchange Act of 1934 significantly strengthen the plaintiffs' position. The Hindenburg report's extensive investigation, backed by interviews with 18 former employees and analysis of 900+ facility cost reports, provides substantial credibility to the allegations.
The alleged Medicare fraud scheme, involving COVID-era waiver abuse and falsified documentation, could trigger multiple federal investigations beyond the current civil investigative demands. The
Most concerning is the claim that fraudulent practices generated over
The allegations reveal systematic exploitation of healthcare reimbursement systems, particularly troubling in the senior care sector. The practice of artificially inflating patient acuity levels through COVID-era waivers represents a sophisticated manipulation of Medicare's payment structure. The "renting" of licenses and manipulation of staff documentation directly impacts facility ratings and quality metrics, undermining the entire regulatory framework designed to protect vulnerable seniors.
The investigation's timing, spanning five months and coinciding with both IPO and SPO periods, suggests PACS may have conducted these offerings while aware of underlying operational issues. The postponement of Q3 earnings amid federal investigation signals potential systemic issues across their facility network. For investors, this raises fundamental questions about the company's ability to maintain revenue levels under legitimate operating practices.
This is a catastrophic development for PACS investors, particularly those who participated in the April 2024 IPO and September 2024 SPO. The stock's dramatic decline of
The federal investigation could result in substantial fines, mandatory restructuring and potential leadership changes. Medicare reimbursement restrictions could severely impact future revenue streams. With a market cap of
SAN FRANCISCO, CA / ACCESSWIRE / December 24, 2024 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP encourages investors in PACS Group, Inc. ("PACS" or the "Company") (NYSE:PACS) who purchased or otherwise acquired PACS common stock between April 11, 2024, and November 5, 2024, inclusive (the "Class Period"), including investors who purchased PACS common stock pursuant and/or traceable to the registration statements issued in connection with PACS's April 11, 2024 initial public offering ("IPO"), and/or the Company's September 6, 2024secondary public offering ("SPO"), to contact us immediately regarding a pending securities class action against PACS. The deadline to apply to be lead plaintiff is January 13, 2025.
Class Period: April 11, 2024 - November 5, 2024
Lead Plaintiff Motion Deadline: January 13, 2025
Case information:lieffcabraser.com/securities/pacs-group
Contact us: Email or textinvestorinfo@lchb.com or call 1-800-541-7358
PACS, incorporated in California and headquartered in Farmington, Utah, is a holding company that, through its subsidiaries, operates senior care facilities, skilled nursing facilities, and assisted living facilities.
The actions allege that PACS made materially false and misleading statements and omissions throughout the Class Period, including in its IPO and SPO registration statements, and failed to disclose material adverse facts about its business, operations, and prospects, including: (1) that the Company conducted a "scheme" to submit false claims to Medicare which "drove more than
On November 4, 2024, Hindenburg Research published a report based on its five-month investigation that included interviews with 18 former PACS employees, competitors, and an analysis of over 900 PACS facility cost reports.
The report alleged that PACS had engaged in fraudulent practices, including: (1) abusing a COVID-era waiver to classify low-acuity patients as high-acuity and inflate Medicare reimbursements; (2) billing for unnecessary or nonexistent treatments, including respiratory and sensory integration therapies; (3) falsifying staffing documentation to inflate star ratings and avoid penalties; and (4) "renting" licenses to deceive regulators by borrowing credentials from third parties and employing unlicensed administrators or assigning administrators to manage facilities beyond state-mandated limits.
On this news, the price of PACS common stock fell
On November 6, 2024, the Company announced that it would postpone its third-quarter earnings release and disclosed that it had "received civil investigative demands from the federal government regarding the Company's reimbursement and referral practices that may or may not be related to this week's third-party report." On this news, the price of PACS common stock fell
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with over 125 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Repeatedly recognized as a "Plaintiffs' Powerhouse" by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over
Source/Contact
Sharon Lee
Lieff Cabraser Heimann & Bernstein, LLP
415 956-1000
slee@lchb.com
SOURCE: Lieff Cabraser Heimann & Bernstein
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