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INVESTIGATION ALERT: Edelson Lechtzin LLP Announces Investigation of Encompass Health Corporation (NYSE: EHC) and Encourages Investors with Substantial Losses or Witnesses with Relevant Information to Contact the Firm

1. Edelson Lechtzin LLP is investigating EHC for potential securities law violations. 2. Claims involve misleading information affecting investors' decisions. 3. Reported safety concerns linked to patient care led to stock price decline. 4. EHC has 34 out of 41 rehab facilities flagged by Medicare for issues. 5. Company stock saw a 10.35% drop after safety article publication.

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FAQ

Why Bearish?

The investigation and declining safety ratings could severely undermine investor confidence, similar to past incidents where regulatory scrutiny led to significant stock price drops in healthcare sectors. Companies with ongoing investigations often experience persistent pressure on their stock prices, as seen with other healthcare providers following public scrutiny.

How important is it?

The investigation raises significant legal and operational concerns for EHC, creating uncertainty that can affect share price. The media's attention on patient safety at their facilities amplifies that risk.

Why Short Term?

Investor sentiment tends to react quickly to news involving legal investigations and safety concerns. The short-term horizon is evident from the immediate stock drop following adverse news coverage.

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, /PRNewswire/ -- Edelson Lechtzin LLP is investigating potential violations of the federal securities laws involving Encompass Health Corporation ("Encompass") (NYSE: EHC), resulting from allegations of providing potentially misleading information to the investing public. If you are an Encompass investor who suffered a substantial loss and would like to learn more, you can provide your contact information and trading details HERE. You can also contact attorney Eric Lechtzin of Edelson Lechtzin LLP by calling 844-563-5550 or via e-mail at [email protected]. THE COMPANY: Encompass is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with a network of approximately 166 facilities across 38 states. Encompass provides intensive post-acute care, including physical, occupational, respiratory, and speech therapy, to patients recovering from major illnesses and injuries. THE ALLEGED WRONGDOING: On July 15, 2025, The New York Times published an article titled "Even Grave Errors at Rehab Hospitals Go Unpenalized and Undisclosed," detailing patient safety concerns at Encompass rehabilitation hospitals across the country. The article reported that Encompass owns 34 of the 41 inpatient rehab facilities flagged by Medicare as having "statistically significantly worse rates of potentially preventable readmissions for discharged patients." Specifically, these potentially preventable incidents included fatal carbon monoxide poisoning, medication errors, and bed alarm failures. Following publication of the article, the price of Encompass stock fell $12.39 per share, or 10.35%, to close at $107.28 per share on July 15, 2025. ABOUT EDELSON LECHTZIN LLP: Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class cases alleging violations of federal antitrust laws, employee benefit plans under ERISA, wage theft, data security, and consumer fraud. For more information, please contact: Marc H. Edelson, Esq.Eric Lechtzin, Esq.EDELSON LECHTZIN LLP411 S. State Street, Suite N-300Newtown, PA 18940Phone: 844-696-7492 or 215-867-2399 ext. 1Email: [email protected] Email: [email protected] Web: www.edelson-law.com  This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. SOURCE Edelson Lechtzin LLP WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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