Shamis & Gentile, P.A. is investigating claims on behalf of investors of Encompass Health Corporation (“Encompass Health” or the “Company”) (EHC). Impacted investors are advised to contact the firm now.
The investigation concerns whether Encompass Health made materially false and misleading statements, or failed to disclose important information, regarding its financial condition and business prospects during the period from Aug. 5, 2024, to July 15, 2025. A particular focus is on Encompass Health’s public statements in quarterly earnings releases and investor presentations that highlighted strong revenue growth and expressed optimism about the Company’s future, with management raising 2025 guidance and emphasizing a “validated” strategy.
On July 15, 2025, Encompass Health’s stock price experienced a sharp decline of approximately 9.95%, falling from around $119.67 to close near $107. This one-day drop erased an estimated $1.2 billion in market capitalization. The decline followed media reports on July 16, 2025, regarding new CMS policies, including an $8.1 billion outpatient payment boost and the phase-out of “inpatient-only” requirements, which directly impacted Encompass Health’s business model.
The investigation also includes an examination of insider trading activity during the class period–whether the Company’s CFO and other senior officers sold substantial amounts of stock in the months preceding the stock price decline. Certain transactions may raise questions over whether insiders acted with knowledge of undisclosed adverse information.
Shamis & Gentile, P.A. stands out as an advocate for investors who are victims of securities fraud. The firm is committed to securing recoveries for investors who have incurred damages due to false and misleading statements or other corporate misconduct by public companies. Shamis Gentile has recovered over $1 billion for consumers nationwide. Its extensive experience, expertise, and resources enable the firm to resolve disputes in a wide range of matters, including class actions, mass torts and mass arbitrations.
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