NEW YORK, NY / ACCESSWIRE / November 15, 2024 / Wolf Popper LLP is investigating potential claims on behalf of purchasers of PACS Group, Inc. ("PACS" or the "Company") common stock (NYSE:PACS).
PACS operates skilled nursing and assisted living facilities. PACS had its IPO on April 10, 2024 and sold 24.6 million shares at $21.00 per share. On September 5, 2024, PACS and its two co-founders sold 19.0 million shares at $36.25 per share in a secondary equity offering.
During the trading day on November 4, 2024, Hindenburg Research issued a report entitled PACS Group: How To Become A Billionaire In The Skilled Nursing Industry By Systematically Scamming Taxpayers. Specifically, the report indicated, after a five-month investigation that included interviews with 18 former PACS employees, competitors and an analysis of over 900 facility-level cost reports, that "PACS abused a COVID-era waiver, inappropriately accessing skilled care Medicare benefits for thousands of patients across its national portfolio of facilities." Hindenburg estimated "the 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." On this news, PACS' stock price fell $11.93 per share to $31.01 on November 4, 2024, down 27.8% on heavy volume.
Then before the market opened on November 6, 2024, PACS issued preliminary third quarter operational metrics and announced it was postponing the release of its third quarter 2024 financial results. PACS disclosed its Audit Committee, with assistance from external counsel, was going to investigate the short seller report's allegations. PACS' press release also stated that the Company "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 [the Hindenburg short report]." On this news, PACS' stock price fell $11.45 per share to $18.09 on November 6, 2024, down 38.8% on very heavy volume.
Investors who lost over $25,000 trading in PACS common stock and who would like to discuss the investigation should contact Adam Savett at (212) 451-9655, or asavett@wolfpopper.com .
Wolf Popper has successfully recovered billions of dollars for defrauded investors. Wolf Popper's reputation and expertise have been repeatedly recognized by courts that have appointed the firm to major positions in securities litigation. For more information about Wolf Popper, please visit the Firm's website at www.wolfpopper.com.
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Wolf Popper LLP
Adam Savett
845 Third Avenue
New York, NY 10022
Tel.: (212) 451-9655
Email: asavett@wolfpopper.com
SOURCE: Wolf Popper LLP
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