PACS Group, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against PACS Group, Inc. (PACS).

If you purchased or held PACS Group, Inc. securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

The matters described are allegations, not findings of fact. No court has determined liability.

About PACS Group, Inc.

PACS Group, Inc. is a Delaware-incorporated company operating a large post-acute and skilled nursing platform. The company manages hundreds of facilities across multiple states through independently operated subsidiaries.

According to its public filings, PACS’s business is heavily regulated and depends significantly on government reimbursement programs such as Medicare and Medicaid. These programs may expose PACS to risks related to billing integrity, regulatory audits, and compliance with laws such as the Anti-Kickback Statute and False Claims Act.

The company’s leadership includes co-founders Jason Murray (CEO and Chairman) and Mark Hancock (Executive Vice Chair and, as of September 2025, interim CFO).

What's Being Investigated?

The investigation focuses on if the PACS Group may have made misleading statements or omissions regarding its internal controls, executive conduct, and financial reporting.

According to company filings, PACS’s former CFO, Derick Apt, resigned in September 2025 after an Audit Committee investigation found he violated the company’s Code of Conduct by accepting high-value gifts from vendors. This was the first public admission of executive wrongdoing and control failures at the company.

Investors contend that the timing and content of this disclosure contradicted earlier company statements, including a June 16, 2025 announcement that its investigation had “found no basis to question” the integrity of top executives. The resignation came after a series of revenue-recognition restatement warnings and regulatory inquiries, raising questions about the effectiveness of PACS’s internal controls and board oversight.

Key Timeline

• Nov. 4, 2024: Hindenburg Research releases a report alleging systemic Medicare billing abuses at PACS. Investors say this raised red flags about compliance and internal controls.
• Nov. 6, 2024: PACS discloses receipt of federal civil investigative demands (CIDs) and delays its Q3 2024 financial results pending an Audit Committee investigation. Investors argue this signaled serious regulatory scrutiny.
• June 16, 2025: PACS announces it will restate certain financial statements due to revenue-recognition issues, estimating material overstatements. The company’s Audit Committee states there is “no basis to question” executive integrity at this time.
• Sept. 2/8, 2025: PACS discloses the resignation of CFO Derick Apt after the Audit Committee finds he violated the Code of Conduct by accepting high-value gifts from vendors. The company’s stock price falls approximately 28% on Sept. 9, 2025, following the after-hours 8-K filing.

Why Investors May Be Concerned

Investors may allege that PACS may have failed to disclose material weaknesses in internal controls and executive conduct in a timely manner. The sequence of events, including revenue restatements, regulatory investigations, and the CFO’s resignation for Code of Conduct violations, raises questions about the adequacy of board and officer oversight.

Stockholders may also contend that the board may have lacked effective systems to monitor mission-critical risks, such as Medicare billing compliance and vendor relationships. The Audit Committee’s prior statements about executive integrity, followed by subsequent findings of misconduct, could suggest gaps in disclosure controls or oversight processes.

What Investors Can Watch Next

• Any new SEC filings or press releases from PACS addressing internal control remediation, further executive changes, or the outcome of ongoing investigations.
• Updates from the Audit Committee or board regarding governance reforms or additional findings.
• Announcements of regulatory actions or court milestones, if any, related to these matters.

Your Rights and Next Steps

If you are a current or former shareholder of PACS Group, Inc., you may have the right to participate in this investigation. Under Delaware law, stockholders can seek to inspect certain company records to investigate potential wrongdoing or mismanagement. If sufficient evidence emerges, a derivative action may be filed on behalf of the company to recover damages or seek governance reforms.

Shareholders considering action should document their ownership and monitor company disclosures. The investigation may lead to a demand on the board or a books-and-records request to gather further evidence.

You May Be Entitled to Compensation

If you suffered losses as a result of holding or purchasing PACS Group, Inc. securities during the relevant period, you may be eligible to join this ongoing investigation. Securities cases are time-sensitive, and your ability to participate may depend on when you act.

To learn more or to join the investigation, complete the form below.