PACS Group, Inc. Class Action Lawsuit - PACS
Case Summary
Investors who suffered a loss and would like to learn more, click here to contact us.
The PACS Group class action lawsuit seeks to represent purchasers or acquirers of PACS Group, Inc. (NYSE: PACS): (i) securities between April 11, 2024 and November 5, 2024, inclusive (the “Class Period”); and/or (ii) common stock pursuant and/or traceable to PACS Group’s registration statement issued in connection with PACS Group’s April 11, 2024 initial public offering (“IPO”). Captioned Manchin v. PACS Group, Inc., No. 24-cv-08636 (S.D.N.Y.), the PACS Group class action lawsuit charges PACS Group and certain of PACS Group’s top executives, directors, and certain underwriters of the IPO with violations of the Securities Act of 1933 and/or the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the PACS Group class action lawsuit, please provide your information in the form on this page. You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the PACS Group class action lawsuit must be filed with the court no later than January 13, 2025.
CASE ALLEGATIONS: PACS Group, through its subsidiaries, operates skilled nursing facilities and assisted living facilities in the United States. According to the PACS Group class action lawsuit, on or about April 11, 2024, PACS Group conducted its IPO, issuing approximately 21.4 million shares of common stock to the public at the offering price of $21.00 per share for net proceeds of approximately $450 million to PACS Group.
The PACS Group class action lawsuit alleges that defendants throughout the Class Period and in the IPO’s offering documents made false and/or misleading statements and/or failed to disclose that: (i) PACS Group engaged in a “scheme” to submit false Medicare claims which “drove more than 100% of PACS’ operating and net income from 2020-2023”; (ii) PACS Group engaged in a “scheme” to bill “thousands of unnecessary respiratory and sensory integration therapies to Medicare”; and (iii) PACS Group engaged in a scheme to falsify documentation related to licensure and staffing.
The PACS Group class action lawsuit further alleges that on November 4, 2024, Hindenburg Research published a report which alleged, among other things, that “PACS’ Growth From 2020 To 2023 Was Driven By A COVID-Era Medicare Billing Scheme That Drove More Than 100% Of PACS’ Operating And Net Income During The Period.” On this news, the price of PACS Group stock fell more than 27%, according to the complaint.
Then, on November 6, 2024, the PACS Group class action lawsuit further alleges that PACS Group announced that it would postpone its third quarter 2024 earnings release and further disclosed that PACS Group had “received civil investigative demands from the federal government regarding [PACS Group]’s reimbursement and referral practices that may or may not be related to this week’s third-party report.” On this news, the price of PACS Group stock fell by an additional 38.7%, according to the complaint.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired PACS Group securities during the Class Period and/or common stock pursuant and/or traceable to the IPO to seek appointment as lead plaintiff in the PACS Group class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the PACS Group class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the PACS Group class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the PACS Group class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud cases. Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors. We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.