Barrack, Rodos & Bacine Is Investigating PACS Group Inc.
PHILADELPHIA, Nov. 06, 2024 (GLOBE NEWSWIRE) -- The law firm of Barrack, Rodos & Bacine is investigating PACS Group Inc. (NYSE: PACS) for potential securities claims on behalf of shareholders who have suffered financial losses in their PACS’ investment.
WHAT’S THIS ABOUT?
On November 4, 2024, Hindenburg Research published a research report about PACS alleging, among other things, that the company has been “systematically scamming taxpayers.” According to Hindenburg, PACS inflated its Medicare revenue by misusing COVID waivers from 2020 to 2023.
According to Hindenburg, a key element of PACS’ deception was inappropriately categorizing individuals who had simply tested positive for COVID–or, worse, merely been exposed to the virus–as qualifying for “skilled care,” in violation of both Medicare and Department of Justice guidelines. This scheme immediately drives up revenue by as much as 300% per day. These fraudulent categorizations were responsible for “100% of PACS’ operating income from 2020 - 2023,” as per Hindenburg.
Moreover, PACS’ co-founders, Jason Murray and Mark Hancock, paid themselves $194.5 million in dividends prior to the April 2024 IPO, and have sold over $656 million in stock since then. The founders have further “cashed out” approximately one billion dollars “through dividends, stock sales, and margin loans to fund private jets, mansions, and perk-filled sponsorships of their favorite college and professional sports teams,” as the Hindenburg report phrased it.
PACS shares fell as much as 30% after the release of the Hindenburg report, closing down about $13 per share on the day the report was issued, shearing off over two billion dollars in market capitalization.
WHAT CAN I DO?
If you are a current holder of PACS stock, or sold your shares in the aftermath of the report being issued, you may have legal options regarding these recent events. You are encouraged to contact us about your rights in this matter. You may contact the firm by calling Linda Border or Mark Stein at 877-386-3304, or via email at investoralert@barrack.com, or by visiting the firm’s web site www.barrack.com
WHO WE ARE
Barrack, Rodos & Bacine has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in U.S. history of securities litigation. The firm's largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.
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