PACS Group Soars After Providing Update on Progress of Audit (1)

(Adds stock move, analyst commentary.)

PACS Group Inc.shares jump as much as 19%, most intraday since August 2024, after the nursing home operator said its investigation is nearing completion, and to date, its independent audit committee has found no basis to question the integrity of PACS’ executive vice chairman, CEO, CFO or chief accounting officer. PACS also said revenue associated with respiratory and some other therapy services billed under Medicare Part B shouldn’t have been recognized in the first two quarters of 2024.

• Based on preliminary estimates, it overstated total revenue by $15m-$17m for 1Q 2024 and $46m-$48m for ...