Encompass Health Corp Faces Investigation for Securities Law Violations and Safety Concerns

Encompass Health Corp (EHC) is under investigation by Bragar Eagel & Squire, P.C. for potential securities law violations following a New York Times report on subpar safety measures at its hospitals. The investigation could lead to financial liabilities and damage the company's reputation, impacting its stock performance and market position. Affected investors are encouraged to discuss their legal rights with the law firm.

Encompass Health Corp (EHC), a prominent healthcare company, is under investigation by Bragar Eagel & Squire, P.C. for potential securities law violations following a New York Times report on subpar safety measures at its hospitals. The investigation could lead to financial liabilities and damage the company's reputation, impacting its stock performance and market position. Affected investors are encouraged to discuss their legal rights with the law firm.

The New York Times reported that for-profit hospitals run by Encompass perform below average on key safety measures. The article revealed that Encompass owns many rehab facilities with worse rates of potentially preventable, unplanned readmissions to general hospitals, including 34 facilities rated as having statistically significantly worse rates by Medicare. The report also highlighted several "alarming mistakes" leading to patient fatalities in Encompass-owned facilities [1].

Following the publication of the article, Encompass's stock price fell $12.39, or 10.4%, to close at $107.28 per share on July 15, 2025 [2]. The investigation by Bragar Eagel & Squire, P.C. concerns whether Encompass has violated the federal securities laws and/or engaged in other unlawful business practices. Investors are encouraged to contact the law firm directly to discuss their options [1].

Another prominent law firm, Pomerantz LLP, is also investigating claims on behalf of investors of Encompass Health Corporation. Pomerantz LLP is investigating whether Encompass and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices [2].

Encompass Health has historically performed well, with a market capitalization of $10.92 billion and a 15.19% average annual return over the past 5 years [3]. However, the recent revelations and ongoing investigations could pose significant challenges to the company's financial health and market position.

Investors who purchased Encompass shares and suffered losses are advised to contact the law firms directly to discuss their legal rights and potential recourse. The investigations are ongoing, and the outcomes could have significant implications for Encompass Health Corp and its investors.

References:
[1] https://www.morningstar.com/news/globe-newswire/9502638/encompass-investigation-alert-bragar-eagel-squire-pc-is-continuing-investigating-encompass-health-corporation-on-behalf-of-encompass-stockholders-and-encourages-investors-to-contact-the-firm
[2] https://www.globenewswire.com/news-release/2025/07/28/3122656/1087/en/INVESTOR-ALERT-Pomerantz-Law-Firm-Investigates-Claims-on-Behalf-of-Investors-of-Encompass-Health-Corporation-EHC.html
[3] https://www.benzinga.com/insights/news/25/07/46729583/1000-invested-in-this-stock-5-years-ago-would-be-worth-this-much-today