PACS Group Stock Drop Lawsuit Investigation (2024)
We are investigating whether PACS Group (NYSE: PACS) misled or provided false statements to investors in violation of federal securities laws. This potential lawsuit seeks to help PACS Group shareholders recover their losses.
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Why is PACS Group (NYSE: PACS) Stock Dropping?
On November 6, 2024, PACS Group disclosed that it would delay the release of its 2024 Q3 earnings results amidst a government investigation into its reimbursement and referral practices.
This announcement followed a Hindenburg Research report published on November 4, 2024, alleging that PACS Group employed a “turnaround” strategy of “transforming poorly performing skilled nursing facilities into cash spigots” by “systematically scamming taxpayer-funded healthcare programs.” The report further claims that PACS Group tried to return to COVID-level profitability “by billing thousands of unnecessary respiratory and sensory integration therapies to Medicare Part B regardless of clinical need or outcomes.” Hindenburg Research estimates that this scheme “drove more than 100% of PACS’ operating and net income from 2020 – 2023, enabling PACS to IPO in early 2024 with the illusion of legitimate growth and profitability.”
Following this news, shares of PACS Group plummeted over 42% in intraday trading on November 6, 2024, causing significant harm to investors.
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