PACS Group Investors Can Lead Class Action Lawsuit for Substantial Losses
Investor Alert: PACS Group, Inc. Investors with Significant Losses Encouraged to Lead Class Action Lawsuit
If you’re an investor in PACS Group, Inc. (NYSE: PACS) who purchased securities between April 11, 2024, and November 5, 2024, or acquired common stock through PACS Group’s IPO on April 11, 2024, you might have the opportunity to lead a class action lawsuit. The lawsuit, known as Manchin v. PACS Group, Inc., No. 24-cv-08636 (S.D.N.Y.), alleges violations of the Securities Act of 1933 and/or the Securities Exchange Act of 1934 by PACS Group, its top executives, directors, and IPO underwriters.
PACS Group operates skilled nursing and assisted living facilities in the U.S. During its IPO on April 11, 2024, the company issued around 21.4 million shares at an offering price of $21.00 per share, raising approximately $450 million in net proceeds.
The class action lawsuit claims that defendants made false statements or failed to disclose crucial information during the Class Period and in the IPO’s documents. Allegations include a “scheme” of submitting false Medicare claims, billing unnecessary therapies to Medicare, and falsifying documentation related to licensure and staffing.
Following a report by Hindenburg Research on November 4, 2024, revealing questionable billing practices heavily impacting PACS Group’s income from 2020-2023, stock prices dropped over 27%. Additionally, on November 6, 2024, PACS Group announced the postponement of its third-quarter earnings release due to federal government inquiries into reimbursement and referral practices, leading to a further 38.7% drop in stock prices.
If you’ve suffered financial losses and are interested in serving as lead plaintiff in the PACS Group class action lawsuit, you can provide your information here: [Link to provide information]. For further assistance, you can reach out to attorneys J.C. Sanchez or Jennifer N. Caringal at Robbins Geller by calling 800/449-4900 or emailing [email protected]
The Private Securities Litigation Reform Act of 1995 allows investors who bought PACS Group securities during the Class Period to seek appointment as lead plaintiff. The lead plaintiff is typically the investor with the greatest financial interest in seeking relief on behalf of all affected class members. Leading a class action lawsuit ensures that the interests of all investors are represented throughout the legal process.
