Encompass Health's stock dropped 10.3% after a NY Times report revealed safety issues and poor Medicare scores at its rehab hospitals, prompting a securities investigation and potential class action lawsuit.

Following a July 15, 2025, New York Times report detailing safety issues at Encompass Health rehabilitation hospitals, including patient harm incidents and poor Medicare safety scores, the company’s stock fell 10.3%. The Rosen Law Firm has launched an investigation into possible securities violations, alleging the company may have misled investors. It is preparing a class action lawsuit for affected shareholders, offering no upfront fees, with eligibility for those who bought stock during the relevant period. The firm, known for successful securities litigation, encourages investors to contact them for more information.