SAN FRANCISCO, July 1, 2026 /PRNewswire/ — The Ensign Group (NASDAQ: ENSG) investors saw the price of their shares in the skilled nursing facilities (“SNFs”) provider tumble over 8% on June 8 and another 3% on June 11, 2026 after Hunterbrook Media and Muddy Waters Research, respectively, published highly critical reports questioning Ensign’s business practices.
In total, over $500 million of Ensign’s market capitalization has been wiped out since June 7, 2026, the day before the first of the two reports.
These developments have prompted national shareholder rights firm Hagens Berman to open an investigation into allegations within the two reports and whether Ensign may have violated the federal securities laws.
The firm encourages Ensign investors who suffered substantial losses to submit your losses now.
Visit: www.hbsslaw.com/investor-fraud/ensg
Contact the Firm Now: ENSG@hbsslaw.com
844-916-0895
The Ensign Group (ENSG) Investigation:
The investigation is primarily focused on the propriety of Ensign’s disclosures about SNF acquisitions, regulatory compliance, and certain accounting matters.
In the past, Ensign repeatedly assured investors that “compliance and quality outcomes are precursors to outstanding financial performance” and “we strive to aggressively increase quality in every facility we acquire, and to adjust our overall policies to adapt to CMS’s changing criteria for the Five-Star Quality Rating System.”
But, on June 8, 2026, Hunterbrook published its report, contending in part that “Ensign’s profits can be traced to providing less care than its patients need – and less care than it is meant to provide based on the tax dollars it receives from the government.” In addition, the firm said that “[w]e found Ensign’s growth strategy is to buy struggling nursing homes – then cut staff at those facilities and bank the savings, all while claiming quality improves.”
Then, on June 11, 2026, Muddy Waters Research published its report, adding to Hunterbrook’s analysis. Muddy Waters sent investigators to 57 of Ensign’s SNFs and found “red flags consistent with rented” NHA licenses that enabled “Ensign to state the facilities have licensed Administrators when in fact these administrators are seldom on premise and do not substantively manage the facilities.”
The firm concluded that “this scheme, which could amount to fraud against states, Medicare, and Medicaid, is the pillar upon which Ensign’s acquisition strategy and margins is built[]” and “[u]nder the False Claims Act, if these practices have been in place for one year at ~20% of facilities, we estimate the violations carry theoretical sanctions in the billions of dollars.”
“Our investigation is focused on whether the analysts’ allegations are accurate and, if so, whether Ensign may have misled investors about its business practices and accounting,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Ensign and have substantial losses, or have knowledge that will assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to other frequently asked questions about the firm’s Ensign investigation, read more »
Whistleblowers: Persons with non-public information regarding Ensign should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ENSG@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.
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SOURCE Hagens Berman Sobol Shapiro LLP
