Pomerantz investigates Encompass Health Corporation over potential securities fraud.

Pomerantz LLP is investigating Encompass Health Corporation for potential securities fraud and unlawful business practices. The investigation follows a New York Times article that cited federal data and inspection reports alleging that Encompass' for-profit hospitals perform below average on key safety measures. The article reported that Encompass owns facilities with statistically significantly worse rates of potentially preventable readmissions.

NEW YORK, July 2, 2025 – Pomerantz LLP, a renowned law firm specializing in corporate and securities litigation, has announced an investigation into potential securities fraud and unlawful business practices involving Encompass Health Corporation (NYSE: EHC). The investigation follows a New York Times article published on July 15, 2025, which cited federal data and inspection reports alleging that Encompass' for-profit hospitals perform below average on key safety measures [1].

The New York Times article reported that Encompass owns facilities with statistically significantly worse rates of potentially preventable readmissions, as rated by Medicare. The article further described several "alarming mistakes" leading to fatalities of patients in the care of Encompass-owned facilities. Following the publication of the article, Encompass' stock price fell by $12.39 per share, or 10.35%, to close at $107.28 per share on July 15, 2025 [2].

Pomerantz LLP is investigating whether Encompass and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. Investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980, for more information about joining the class action [1].

Encompass Health Corporation operates a network of for-profit rehabilitation hospitals across the United States. The company has faced scrutiny in recent years due to allegations of subpar patient care and safety standards. The latest investigation by Pomerantz LLP adds to the growing list of legal challenges faced by the company.

Investors are urged to stay informed about the developments in this case. Pomerantz LLP has a proven track record of recovering multimillion-dollar damages on behalf of class members in securities class actions [1].

References:
[1] https://www.marketscreener.com/news/pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-encompass-health-corporation-ehc-ce7c50dedf8ff520
[2] https://www.prnewswire.com/news-releases/investor-alert-pomerantz-law-firm-investigates-claims--on-behalf-of-investors-of-encompass-health-corporation---ehc-302538519.html