The legal scrutiny follows a report published on June 8, 2026, by short seller Hunterbrook. The findings, which emerged after a five-month investigation, claim that the company's profitability is driven by understaffing facilities and manipulating quality metrics. The report further alleges that these operational choices have resulted in patient harm and fatalities, while taxpayer funds were allegedly diverted to executives and affiliates.

Following the release of these findings, shares of the NASDAQ-listed company plummeted during intraday trading. Rosen Law Firm is now seeking to represent investors who suffered financial losses, operating on a contingency fee basis. Interested parties are directed to contact attorney Phillip Kim to participate in the prospective litigation.