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Faruki & Faruki, LLP securities litigation partner James (Josh) Wilson encourages investors who have suffered losses over $50,000 in the PACS group to contact him directly to discuss their options
If you have suffered losses that exceed $50,000 PACS Group 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 (the “IPO” or ” Offer”); and/or (b) all persons and entities that have purchased or otherwise acquired common shares of PACS pursuant to, or traceable, or both, to the SPO Materials (as defined herein) issued in connection with PACS- by this September 2024 Secondary Public Offering (“SPO”); and/or (c) securities between April 11, 2024 and November 5, 2024, inclusive (“Class Period”) and I would like to discuss your legal rights, call Faruki & Faruki partners Josh Wilson direct at 877-247-4292 or 212-983-9330 (ext. 1310).
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New York, NY–(Newsfile Corp. – Dec 15, 2024) – Faruki & Faruki, LLP, a leading national securities law firm, is investigating potential claims against PACS Group, Inc. (“PACS Group” or the “Company”) (NOT: PACS) and reminds investors of The deadline is January 13, 2025 to seek the role of lead prosecutor in a federal securities lawsuit filed against the Company.
Faruki & Faruki is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has returned hundreds of millions of dollars for investors since its founding in 1995. See www.farukilav.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the following: (1) that the Company engaged in a “scheme ” for submitting false Medicare claims that he “led more than 100% of PACS operating and net income from 2020 to 2023″; (2) that the Company engaged in a “scheme” to “bill Medicare for thousands of unnecessary respiratory and sensory integration therapies”; (3) that the Company participated in a scheme to falsify documentation related to the licensing and employment of personnel; and (4) that, as a result of the foregoing, the defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.
On April 11, 2024, PACS Group conducted an IPO, selling 21,428,572 shares of common stock at a price of $21.00 per share, and received net proceeds of approximately $450 million.
On September 3, 2024, PACS filed with the SEC a secondary offering registration statement on Form S-1 (the “SPO Registration Statement”). On September 6, 2024, PACS filed with the SEC an SPO prospectus on Form 424B4, which formed part of the SPO Registration Statement (the “SPO Prospectus” and together with the SPO Registration Statement and related materials filed or published herewith forms, “SPO Materials” issued 2,777,778 shares of common stock at a price of $36.25 per share for proceeds of $100.7 million for the company Via SPO, PACS insiders also sold 16,256,704 shares of common stock at a price of $36.25 per share for proceeds of 589 .3 million dollars.
On November 4, 2024, Hindenburg Research released a report based on a five-month investigation that included interviews with 18 former PACS Group employees, competitors and an analysis of more than 900 PACS facility cost reports. The report said the company “abused the COVID-era waiver” in a “scheme” that involved fraudulently submitting false Medicare claims that “drove more than 100% of PACS’ operating and net income from 2020 to 2023.” year, enabling PACS to execute IPO in early 2024 with the illusion of legitimate growth and profitability”. The report further alleges that the company engaged in a revenue maintenance scheme by “billing for thousands of unnecessary Medicare Part B respiratory and sensory integration therapies, regardless of clinical need or outcomes.” The report also cited widespread practices of document falsification, including engaging in “a scheme in which PACS attempts to defraud regulators by ‘renting’ licenses from third parties to ‘hang’ on buildings” and then “either employing unlicensed administrators or managing the administrators more buildings that exceed the limits state-mandated.” Similarly, the report alleges that the Company engaged in a scheme related to the licensing and employment of nurses, whereby “PACS secretly lists non-certified nurses (NAs) as certified in the system, in an apparent scheme to fraud in relation to the number of employees” and “retroactively adds false RN hours” how would “meet minimum staffing requirements, increase star ratings and avoid costly fines.”
On this news, the Company’s stock price fell $11.93, or 27.78%, to close at $31.01 per share on November 4, 2024, due to unusually high trading volume.
Then, on November 6, 2024, before the market opened, the Company announced that it would delay the release of earnings for the third fiscal quarter of 2024. The Company further disclosed that it has “received civil investigation requests from the federal government regarding the Company’s reimbursement and referral practices which can but don’t must be linked to this week’s third party report”.
On this news, the Company’s stock price fell $11.45, or 38.76%, to close at $18.09 per share on November 6, 2024, due to unusually high trading volume. By the start of this action, PACS Group stock was trading at just $18.09 per share, down more than 13.9% from its IPO price of $21 per share.
The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of the class members who conducts and oversees the litigation on behalf of the putative class. Each member of the putative class may propose to the court to be the lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to participate in any compensation is not affected by the decision to be the lead plaintiff or not.
Faruki & Faruki, LLP also encourages anyone with information regarding PACS Group’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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To view the original version of this press release, visit https://www.nevsfilecorp.com/release/233773
