1 week Ago
NEWTOWN, Pa. , Nov. 10, 2024 /PRNewswire/ -- Edelson Lechtzin LLP is investigating potential violations of the federal securities laws involving PACS Group Inc.
(NASDAQ: PACS ) resulting from allegations of providing misleading business information to the investing public. If you have non-public information that could assist in the PACS Group Inc. investigation or if you are a PACS Group Inc.
investor who suffered a loss and would like to learn more, you can provide your information HERE . You can also contact attorney Eric Lechtzin of Edelson Lechtzin LLP by calling 844-563-5550 (ext. 1) or via e-mail at [email protected] .
THE COMPANY: PACS Group Inc., through its subsidiaries, operates various skilled nursing facilities (SNF) and assisted living facilities (ALF). PACS Group also owns subsidiaries that are engaged in the acquisition, ownership, and leasing of healthcare-related properties.
As of June 2024 , PACS Group subsidiaries operated 220 healthcare facilities. THE ALLEGED WRONGDOING: On November 4, 2024 , Hindenburg Research published a report of its investigation of PACS Group, which "revealed that PACS' 'turnaround' strategy largely boils down to systematically scamming taxpayer-funded healthcare programs." As an example, the report cites PACS' abuse of a COVID-era waiver, that allowed it to inappropriately access "skilled care Medicare benefits for thousands of patients across its national portfolio of facilities.
.." Hindenburg estimates that this "scheme drove more than 100% of PACS' operating and net income from 2020 – 2023.
.." Following the COVID-waiver scheme, PACS' Medicare skilled care revenue declined sharply in the second half of 2023, according to the report.
But PACS' Medicare revenue rebounded in the first half of 2024, by using a "'new trick' to get back to 'COVID level profitability' involving billing thousands of unnecessary respiratory and sensory integration therapies to Medicare Part B regardless of clinical need or outcomes," Hindenburg reported. The Hindenburg report noted that PACS' two co-founders paid themselves $194.5 million in dividends prior to the company's April 2024 IPO and have sold $656.
5 million in stock since the IPO. THE REVELATION: On the news of the Hindenburg Research report, the price of PACS Group stock fell 27.8%, from a closing price of $42.
94 per share on November 1, 2024 , to $31.01 per share on November 4, 2024 . By November 8, 2024 , the price had declined to $21.
33 per share. ABOUT EDELSON LECHTZIN LLP: Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California . In addition to cases involving securities and investment fraud , our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud , and dangerous and defective drugs and medical devices.
For more information, please contact: Marc H. Edelson, Esq. Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP 411 S. State Street, Suite N-300 Newtown, PA 18940 Phone: 844-696-7492 or 215-867-2399 ext. 1 Email: [email protected] Email: [email protected] Web: www.
edelson-law.com This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one.
You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
SOURCE Edelson Lechtzin LLP.
