Pacs Group CFO Apt resigns

According to a regulatory filing, on September 2, 2025, Derick Apt resigned from his role as Chief Financial Officer of PACS Group (PACS). In mid-July 2025, while its previously disclosed investigation was ongoing, the Audit Committee of the company’s board of directors became aware of allegations that Mr. Apt had accepted a series of high-value items from individuals associated with a group of related entities with which the Company does business. The Audit Committee immediately began investigating those allegations. Based upon the results of that work, the Audit Committee made interim findings that Apt’s receipt of these items of value violated company policies, including the company’s Code of Conduct. Thereafter, the Board asked for, and Apt offered, his resignation. In connection with Apt’s resignation, the company and Apt entered into a separation agreement pursuant to which Mr. Apt signed a general release of all claims in favor of the company and its affiliates, and reaffirmed his obligation to continued compliance with certain restrictive covenants, including non-solicitation, non-disparagement and confidential information covenants. In exchange for his timely execution and non-revocation of the general release, the Company has agreed to accelerate the vesting of 82,116 restricted stock units; Mr. Apt forfeited the remainder of his restricted stock units that have not yet vested. The Company also agreed to waive Mr. Apt’s obligation to comply with a one-year post-termination non-competition covenant in favor of the Company. The Company has commenced a search for a permanent Chief Financial Officer. The Company has also engaged or retained additional individuals to further augment its existing finance and accounting resources.