Overview

A class action lawsuit has been filed against PACS Group, Inc. (“PACS” or the “Company”) (NYSE: PACS) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws.  The PACS class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired PACS: (a) common stock pursuant 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 (“IPO” or the “Offering”); and/or (b) securities between April 11, 2024 and November 5, 2024, both dates inclusive (the “Class Period”).  Investors have until January 13, 2024, to seek appointment as lead plaintiff in the PACS class action lawsuit.

PACS, through its subsidiaries, operates senior care facilities, skilled nursing facilities, and assisted living facilities in the United States.

The PACS class action lawsuit alleges that on April 12, 2024, Defendants filed its prospectus on Form 424B4 with the U.S. Securities and Exchange Commission, which forms part of the Registration Statement.  In the IPO, the Company sold 21,428,572 shares of common stock at a price of $21.00 per share.  The Company received net proceeds of approximately $450 million from the Offering.  The proceeds from the IPO were purportedly to be used to repay amounts outstanding under the Company’s credit facility and general corporate purposes to support the growth of the business.

On November 4, 2024, Hindenburg Research released a report accusing PACS of submitting false Medicare claims, abusing COVID-era waivers, and engaging in schemes involving unnecessary billing, falsifying documentation, and misrepresenting licensure and staffing to inflate revenue and meet regulatory requirements.  These allegations suggested PACS’ income from 2020 to 2023 was largely based on fraudulent practices, enabling it to file an IPO with the appearance of legitimate growth.  Following the report, PACS’ stock dropped 27.78%.  On November 6, PACS postponed its third quarter earnings release, disclosing federal investigations into its reimbursement practices, causing another 38.76% stock drop.  Throughout this period, PACS allegedly misled investors by failing to disclose these activities and the associated risks.

*          *          *

If you purchased or otherwise acquired PACS: (a) common stock pursuant and/or traceable to the Registration Statement issued in connection with the Company’s April 11, 2024 IPO; and/or (b) securities between April 11, 2024 and November 5, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as a lead plaintiff in the PACS class action lawsuit is January 13, 2024