NEW YORK, Jan. 06, 2025 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of PACS Group, Inc. (NYSE: PACS), Chipotle Mexican Grill, Inc. (NYSE: CMG), Hasbro, Inc. (NASDAQ: HAS), and Humacyte, Inc. (NASDAQ: HUMA). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
PACS Group, Inc. (NYSE: PACS)
Class Period: April 11, 2024 – November 5, 2024
Lead Plaintiff Deadline: January 13, 2025
On April 11, 2024, PACS Group conducted its IPO, selling 21,428,572 shares of common stock at a price of $21.00 per share, and received net proceeds of approximately $450 million.
On November 4, 2024, Hindenburg Research published a report based on a 5-month investigation that included interviews with 18 former PACS Group employees, competitors, and an analysis of more than 900 PACS facility cost reports. The report alleged the Company had “abused a COVID-era waiver” in a “scheme” that involved falsely submitting false Medicare claims which “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.” The report further alleged the Company engaged in a scheme to maintain revenue by “bill[ing] thousands of unnecessary respiratory and sensory integration therapies to Medicare Part B regardless of clinical need or outcomes.” The report also alleged a widespread practice of falsifying documentation, including by engaging in a “scheme whereby PACS attempts to fool regulators by ‘renting’ licenses from third parties to ‘hang’ on buildings” and then “either employs unlicensed administrators or has administrators manage multiple buildings in excess of state mandated limits.” Similarly, the report alleges the Company engaged in a scheme related to licensure and staffing of nurses, whereby “PACS secretly lists uncertified nurse aides (NAs) as certified in the system, in an apparent scheme to cheat staffing ratios” and “retroactively add fake RN hours” in order “to meet minimum staffing requirements, boost star ratings, and avoid costly penalties.”
On this news, the Company’s share price fell $11.93 or 27.78%, to close at $31.01 per share on November 4, 2024, on unusually heavy trading volume.
Then, on November 6, 2024, before the market opened, the Company announced that it would postpone its fiscal third quarter 2024 earnings release. The Company further disclosed it 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 this week’s third-party report.”
On this news, the Company’s share price fell $11.45 or 38.76%, to close at $18.09 per share on November 6, 2024, on unusually heavy trading volume. By the commencement of this action, PACS Group stock has traded as low as $18.09 per share, a more than 13.9% decline from the $21 per share IPO price.
The complaint filed in this class action alleges that in the Registration Statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company engaged in a “scheme” to submit false Medicare claims which “drove more than 100% of PACS’ operating and net income from 2020 – 2023”; (2) that the Company engaged in a “scheme” to “bill thousands of unnecessary respiratory and sensory integration therapies to Medicare”; (3) that the Company engaged in a scheme to falsify documentation related to licensure and staffing; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For more information on the PACS Group class action go to: https://bespc.com/cases/PACS
Chipotle Mexican Grill, Inc. (NYSE: CMG)
Class Period: February 8, 2024 – October 29, 2024
Lead Plaintiff Deadline: January 10, 2025
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Chipotle’s portion sizes were inconsistent and left many customers dissatisfied with the Company’s offerings; (2) in order to address the issue and retain customer loyalty, Chipotle would have to ensure more generous portion sizes, which would increase cost of sales; and (3) as a result, defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Chipotle class action go to: https://bespc.com/cases/CMG
Hasbro, Inc. (NASDAQ: HAS)
Class Period: February 7, 2022, – October 25, 2023
Lead Plaintiff Deadline: January 13, 2025
The Hasbro class action lawsuit alleges that defendants throughout the Class Period misrepresented the quality of inventory and the appropriateness of the levels of inventories carried by Hasbro and its retailers compared to customer demand. In truth, the Hasbro class action alleges that Hasbro had a significant buildup of inventory that it was struggling to manage and which far exceeded customer demand.
The Hasbro class action lawsuit alleges that on January 26, 2023, Hasbro previewed its fourth quarter results for fiscal year 2022 and admitted that revenue would contract by 17% year-over-year. To combat weakening sales, Hasbro announced it would be laying off 15% of its global work force, and at the same time disclosed the immediate departure of its COO, defendant Eric Nyman, the complaint alleges. On this news, the price of Hasbro common stock fell by more than 8%, according to the Hasbro class action lawsuit.
Then, on October 26, 2023, the Hasbro class action lawsuit further alleges that in announcing its financial results for the third quarter of fiscal year 2023, Hasbro revealed an 18% decline in Consumer Product revenues year-over-year, along with a significant reduction in guidance for the remainder of the year. In the attendant earnings call, Hasbro’s CEO, defendant Gina Goetter, further revealed that Hasbro was forecasting “$50-ish million of one-time cost” that was to be spent on “mov[ing] through inventory at the retailer level, extra marketing to move through the inventory, [and] extra obsolescence cost” in its Consumer Products segment, according to the complaint. On this news, the price of Hasbro common stock fell by an additional 11.7%, according to the Hasbro class action lawsuit.
For more information on the Hasbro class action go to: https://bespc.com/cases/HAS
Humacyte, Inc. (NASDAQ: HUMA)
Class Period: May 10, 2024 – October 17, 2024
Lead Plaintiff Deadline: January 17, 2025
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that Defendants failed to disclose to investors: (1) that the Company’s Durham, North Carolina facility failed to comply with good manufacturing practices, including quality assurance and microbial testing; (2) that the FDA’s review of the BLA would be delayed while Humacyte remediated these deficiencies; and (3) that, as a result, there was a substantial risk to FDA approval of ATEV for vascular trauma; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For more information on the Humacyte class action go to: https://bespc.com/cases/HUMA
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
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