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. The lawsuit covers investors who purchased stock between April 11, 2024, and November 5, 2024, including those who bought shares during the company's IPO and SPO.
The lawsuit alleges that PACS made false statements and omissions about its business practices, including a scheme to submit false Medicare claims that 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's stock dropped 27.78% to $31.01. The stock fell another 38.76% to $18.09 on November 6, 2024, after the company postponed Q3 earnings and disclosed federal investigation demands.
Il Gruppo PACS, un operatore di strutture per anziani, si trova ad affrontare una causa legale collettiva in materia di titoli, con una scadenza fissata per il 13 gennaio 2025. La causa riguarda gli investitori che hanno acquistato azioni tra l'11 aprile 2024 e il 5 novembre 2024, inclusi coloro che hanno acquistato azioni durante l'IPO e lo SPO dell'azienda.
La causa sostiene che PACS abbia fatto dichiarazioni false e omissioni riguardo le proprie pratiche commerciali, compreso uno schema per presentare richieste di rimborso Medicare false, che avrebbero generato oltre il 100% del reddito operativo dell'azienda dal 2020 al 2023. A seguito di un rapporto della Hindenburg Research del 4 novembre 2024, che ha rivelato presunti pratiche fraudolente, il titolo di PACS è crollato del 27,78%, scendendo a $31,01. Il titolo è sceso ulteriormente del 38,76%, arrivando a $18,09 il 6 novembre 2024, dopo che l'azienda ha rinviato la comunicazione dei risultati del terzo trimestre e ha divulgato richieste di indagini da parte del governo federale.
El Grupo PACS, un operador de instalaciones de atención a personas mayores, enfrenta una demanda colectiva de valores con una fecha límite del 13 de enero de 2025. La demanda abarca a los inversionistas que compraron acciones entre el 11 de abril de 2024 y el 5 de noviembre de 2024, incluidos aquellos que compraron acciones durante la OPI y SPO de la empresa.
La demanda alega que PACS hizo declaraciones falsas y omisiones sobre sus prácticas comerciales, incluyendo un esquema para presentar reclamaciones fraudulentas de Medicare que, según se informa, generó más del 100% de los ingresos operativos de la empresa desde 2020 hasta 2023. Tras un informe de Hindenburg Research el 4 de noviembre de 2024, que reveló supuestas prácticas fraudulentas, las acciones de PACS cayeron un 27.78% a $31.01. Las acciones cayeron otro 38.76% a $18.09 el 6 de noviembre de 2024, después de que la empresa pospuso los resultados del tercer trimestre y divulgó demandas de investigación federal.
PACS 그룹은 노인 돌봄 시설 운영업체로서, 2025년 1월 13일까지의 마감일이 있는 증권 집단 소송에 직면해 있습니다. 이 소송은 2024년 4월 11일부터 2024년 11월 5일 사이에 주식을 구매한 투자자를 대상으로 하며, 회사의 IPO 및 SPO 동안 주식을 구매한 사람들을 포함합니다.
소송에서는 PACS가 비즈니스 관행에 대해 허위 진술과 생략을 했다는 주장을 하고 있으며, 2020년부터 2023년까지 회사의 운영 수익의 100%를 초과하는 금액을 생성했을 것으로 보고된 거짓 Medicare 청구서를 제출하는 계획이 포함되어 있다고 합니다. 2024년 11월 4일 Hindenburg Research의 보고서에 따라 주장된 사기 행위가 드러난 후, PACS의 주가는 27.78% 하락하여 $31.01이 되었습니다. 2024년 11월 6일에는 회사가 3분기 실적 발표를 연기하고 연방 조사 수요를 공개한 후 주가는 다시 38.76% 하락하여 $18.09에 이르렀습니다.
Le groupe PACS, un opérateur d'établissements de soins pour seniors, fait face à une action collective en valeurs mobilières avec une date limite fixée au 13 janvier 2025. L'action concerne les investisseurs ayant acheté des actions entre le 11 avril 2024 et le 5 novembre 2024, y compris ceux ayant acquis des actions lors de l'IPO et du SPO de l'entreprise.
L'action affirme que PACS a fait de fausses déclarations et des omissions concernant ses pratiques commerciales, y compris un stratagème visant à soumettre de fausses demandes de Medicare qui, selon les rapports, auraient généré plus de 100 % des revenus opérationnels de l'entreprise de 2020 à 2023. Suite à un rapport de Hindenburg Research du 4 novembre 2024, révélant des pratiques frauduleuses présumées, l'action de PACS a chuté de 27,78 %, atteignant 31,01 $. L'action a chuté de nouveau de 38,76 %, tombant à 18,09 $ le 6 novembre 2024, après que l'entreprise a reporté l'annonce des résultats du troisième trimestre et a divulgué des demandes d'enquête fédérale.
PACS Gruppe, ein Betreiber von Seniorenpflegeeinrichtungen, sieht sich mit einer Sammelklage im Wertpapierbereich konfrontiert, die eine Frist bis zum 13. Januar 2025 hat. Die Klage betrifft Investoren, die zwischen dem 11. April 2024 und dem 5. November 2024 Aktien gekauft haben, einschließlich derjenigen, die während des IPO und SPO des Unternehmens Aktien erworben haben.
In der Klage wird behauptet, dass PACS falsche Aussagen und Unterlassungen in Bezug auf seine Geschäftspraktiken gemacht hat, einschließlich eines Plans zur Einreichung falscher Medicare-Anträge, die Berichten zufolge über 100 % des Betriebseinkommens des Unternehmens von 2020 bis 2023 generiert haben. Nach einem Bericht von Hindenburg Research am 4. November 2024, der angebliche betrügerische Praktiken aufdeckte, fiel der Aktienkurs von PACS um 27,78 % auf $31,01. Am 6. November 2024 fiel die Aktie um weitere 38,76 % auf $18,09, nachdem das Unternehmen die Bekanntgabe der Ergebnisse für das dritte Quartal verschob und Anforderungen für Bundesuntersuchungen offenlegte.
- None.
- Company faces securities class action lawsuit for alleged fraudulent practices
- Alleged scheme to submit false Medicare claims 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 government initiated civil investigative demands regarding reimbursement practices
- Allegations of falsifying documentation for licensure and staffing
Insights
The securities class action lawsuit against PACS Group represents a major legal and financial risk for the company. The allegations of systematic Medicare fraud through false claims and unnecessary treatments are particularly serious, potentially leading to both civil and criminal penalties. The involvement of federal investigators through civil investigative demands adds substantial weight to these claims.
The stock's dramatic decline of
The dual legal exposure under both the Securities Act of 1933 and Exchange Act of 1934 creates significant liability risks. The timing of the allegations, spanning both the IPO and SPO periods, suggests potential Section 11 strict liability claims, which have a lower burden of proof for plaintiffs than traditional fraud claims.
The allegations against PACS reveal potentially systemic compliance failures across multiple operational areas. The reported abuse of COVID-era waivers to inflate Medicare reimbursements through patient misclassification represents a sophisticated scheme that could have generated substantial fraudulent revenue. Think of it as upgrading economy passengers to first class and charging the government the price difference.
The alleged staffing documentation falsification to manipulate star ratings is particularly concerning for the healthcare sector, where these ratings directly impact both reimbursement rates and patient choice. The practice of "renting" licenses shows a deliberate attempt to circumvent fundamental regulatory requirements designed to ensure quality care.
Most alarming is Hindenburg's claim that these practices "drove more than 100% of PACS' operating and net income from 2020-2023," suggesting the entire business model may have been built on fraudulent practices. For investors, this implies that legitimate earnings could be negative, fundamentally challenging the company's viability under compliant operations.
SAN FRANCISCO, CA / ACCESSWIRE / December 23, 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, 2024 secondary 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 text investorinfo@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, LLP
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