The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed on behalf of investors who acquired The Ensign Group, Inc. (“Ensign” or the “Company”) (NASDAQ: ENSG) securities between February 10, 2022 and June 18, 2026, inclusive (“the Class Period”). If you suffered a loss on your Ensign investments, you have until December 7, 2026 to request lead plaintiff appointment.
[CONTACT THE FIRM IF YOU SUFFERED A LOSS]
Investors are encouraged to fill out the contact form above or contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com to discuss your rights or interests in the securities fraud class action lawsuit at no cost.
What Is This Lawsuit About? The lawsuit alleges that Ensign failed to disclose that: (i) Ensign’s business model depends on the systematic and widespread neglect of elderly people who live in its facilities, including those with needs for high levels of care; (ii) Ensign’s abuse and neglect includes not giving residents enough food, medical attention, or even basic toiletries as well as failing to respond to residents in clear distress, which has resulted in resident deaths; (iii) Ensign uses self-reporting measures as a way to cover up that it systematically neglects patients; (iv) Ensign defrauds Medicaid and Medicare by taking federal funds to help patients who need high levels of care, and then neglecting those same patients; (v) Ensign falsifies the number of hours that Certified Nursing Assistants spend with residents; (vi) Ensign engages in an illegal scheme to rent the licenses of Administrators who are not generally present at, nor actually managing, its facilities; and (vii) Ensign materially understated the reputational and litigation exposure that comes with a dangerous, abhorrent, and illegal business model.
On June 8, 2026, Hunterbrook Media LLC (“Hunterbrook”) published a report entitled “Ensign: The Nursing Home Empire Built on Fatal Neglect,” asserting that a five-month investigation by Hunterbrook revealed that “Ensign’s business model relies on delivering inadequate care to patients while gaming data on quality[.] Patients are dying.” The report also stated that Ensign “boomed in recent years by rolling up distressed homes, cutting high-skilled nursing staff, and gaming metrics” and “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.” On this news, the price of Ensign shares declined by $13.88 per share, or approximately 8.15%, from $170.30 per share on June 5, 2026 to close at $156.42 per share on June 8, 2026.
Then, on June 11, 2026, Muddy Waters Research published a report entitled “Ensign: Deceiving the Government at Estimated ~20% of Facilities.” The report stated, “We conclude that Ensign engages in a systematic scheme at an estimated ~20% of Skilled Nursing Facilities (SNFs) to rent the licenses of Administrators who are not generally present at, nor actually managing the facilities… We believe 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.” On this news, the price of Ensign shares declined by $4.52 per share, or approximately 2.98%, from $151.65 on June 10, 2026 to close at $147.13 on June 11, 2026.
Finally, on June 18, 2026, Hunterbrook issued a follow-up report entitled “New: Patients Hungry in Ensign Facilities,” which stated that Ensign residents and caregivers had reached out to Hunterbrook following the publication of its first report to add “new, firsthand evidence of resident hunger, payroll falsification, understaffing, and staff licensing issues.” The article asserted that “staff who have worked at Ensign’s facilities have flooded Hunterbrook’s inbox with harrowing accounts of conditions inside those facilities. The company, meanwhile, has expanded its stock repurchase authorization to $100 million.” On this news, the price of Ensign shares declined by $2.19 per share, or approximately 1.4%, from $155.84 per share on June 17, 2026 to close at $153.65 per share on June 18, 2026.
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The Lead Plaintiff Appointment Process. The federal securities laws permit any investor who acquired eligible securities during the class period to seek appointment as lead plaintiff in a class action lawsuit. Courts do not consider lead plaintiff applications submitted after the relevant deadline. If you choose to take no action, you may remain an absent class member. Learn more about the lead plaintiff process and eligibility requirements here. Courts typically appoint the investor(s) with the largest financial loss in the case and the ability to represent the class rather than investors with simply the largest investment portfolio. Courts regularly appoint individual investors, whether acting alone or as a group, as lead plaintiffs. The rights of any investor who bought shares during the class period are generally already protected. However, lead plaintiffs have the power to influence case strategy and have a say in settlement decisions, as well as decisions concerning allocation of settlement funds among class members.
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What Should I Do? If you purchased or otherwise acquired Ensign securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found on Kirby McInerney LLP’s website.
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