PACS Delays Earnings Amid Internal Audit Investigation

Nursing Home provider PACS Group

Nursing home operator PACS Group delayed the release of its third-quarter earnings, providing only preliminary results on Wednesday as it carries out an internal audit and cooperates with a federal investigation into its referral and reimbursement practices.

Originally scheduled for Nov. 7 after market close, PACS now expects to disclose its financial results “as soon as practicable.”

The announcement comes on the heels of a volatile week for PACS shares amid allegations of fraud made by Hindenburg Research, an entity which targets publicly-traded companies using public records, internal documents, and employee interviews. It shares the findings with limited partners, who take a short position before the report is released, profiting if the company’s stock price falls.

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