The investigation centers on whether the California-based nursing facility operator and its leadership engaged in unlawful business practices. Hunterbrook’s June 8 report alleged that the company’s profitability stems from chronic understaffing and the manipulation of quality metrics, claiming these actions have resulted in patient harm. Shares of the company dropped 8.15% to $156.42 in the wake of the publication.

Pressure mounted just days later when Muddy Waters Research issued its own findings on June 11. The report detailed a potential scheme involving the illicit use of administrator licenses to bypass federal regulations, suggesting possible violations of the False Claims Act. Ensign Group shares subsequently fell another 2.98% to close at $147.13. Investors seeking to participate in the potential class action are encouraged to contact Danielle Peyton at the firm’s New York office.