Urgent Investigation Launched for ModivCare Investors Amid Securities Concerns
On March 28, 2025, the highly regarded national securities law firm Faruqi & Faruqi, LLP announced an urgent investigation surrounding potential claims against ModivCare, Inc. (NASDAQ: MODV). Investors who have suffered losses exceeding $50,000 between November 3, 2022, and May 3, 2023, are being encouraged to engage with the firm to explore their legal options before the impending deadline of March 31, 2025, to apply for lead plaintiff status in the ongoing federal securities class action against the company.
The investigation stems from allegations that ModivCare and its executives may have breached federal securities laws. The firm asserts that there have been false and misleading statements regarding the company's financial stability. Specifically, the complaint points to various issues including negative impacts on adjusted EBITDA due to contract renegotiations, inadequate liquidity, and misleading positive statements about the company's operations and future outlook.
Investors faced considerable losses following the decline in ModivCare's market value as a result of these issues coming to light. ModivCare's recent financial update released on September 16, 2024, indicated a significant reduction in its 2024 Adjusted EBITDA forecast—from a range of $185-$195 million down to $170-$180 million. This adjustment stemmed from pricing accommodations in their Non-Emergency Medical Transportation (NEMT) segment, aimed at retaining and expanding crucial customer relationships. On the day of this announcement, the stock price plummeted by nearly 10%, signaling serious investor concern.
The role of lead plaintiff in securities class actions is pivotal; the lead plaintiff is typically the person with the most financial interest in the outcome. They will oversee the litigation and represent the interests of all class members. Regardless of participation as a lead plaintiff, all members of the class retain equal rights to any financial recovery achieved through the lawsuit.
Faruqi & Faruqi, LLP, founded in 1995, has a strong track record, having successfully recovered hundreds of millions of dollars for investors. The firm actively encourages individuals with information relevant to ModivCare's situation to reach out, particularly current or former employees, shareholders, whistleblowers, or anyone with pertinent insights into the company's practices. The investigation highlights the importance of holding corporations accountable to their investors and ensuring transparency in financial communications.
For those interested in joining this legal pursuit, information on how to participate can be found on the firm’s website, which includes contact details for partner Josh Wilson, who is handling the case. Investors can reach out directly at 877-247-4292 or 212-983-9330 (Ext. 1310) for further discussions regarding their rights and options in this ongoing case. As the deadline approaches, stakeholders are urged to act quickly. Follow updates and further information on platforms like LinkedIn, X, or Facebook from Faruqi & Faruqi, LLP to stay informed on developments related to ModivCare and potential financial recourse.
The investigation stems from allegations that ModivCare and its executives may have breached federal securities laws. The firm asserts that there have been false and misleading statements regarding the company's financial stability. Specifically, the complaint points to various issues including negative impacts on adjusted EBITDA due to contract renegotiations, inadequate liquidity, and misleading positive statements about the company's operations and future outlook.
Investors faced considerable losses following the decline in ModivCare's market value as a result of these issues coming to light. ModivCare's recent financial update released on September 16, 2024, indicated a significant reduction in its 2024 Adjusted EBITDA forecast—from a range of $185-$195 million down to $170-$180 million. This adjustment stemmed from pricing accommodations in their Non-Emergency Medical Transportation (NEMT) segment, aimed at retaining and expanding crucial customer relationships. On the day of this announcement, the stock price plummeted by nearly 10%, signaling serious investor concern.
The role of lead plaintiff in securities class actions is pivotal; the lead plaintiff is typically the person with the most financial interest in the outcome. They will oversee the litigation and represent the interests of all class members. Regardless of participation as a lead plaintiff, all members of the class retain equal rights to any financial recovery achieved through the lawsuit.
Faruqi & Faruqi, LLP, founded in 1995, has a strong track record, having successfully recovered hundreds of millions of dollars for investors. The firm actively encourages individuals with information relevant to ModivCare's situation to reach out, particularly current or former employees, shareholders, whistleblowers, or anyone with pertinent insights into the company's practices. The investigation highlights the importance of holding corporations accountable to their investors and ensuring transparency in financial communications.
For those interested in joining this legal pursuit, information on how to participate can be found on the firm’s website, which includes contact details for partner Josh Wilson, who is handling the case. Investors can reach out directly at 877-247-4292 or 212-983-9330 (Ext. 1310) for further discussions regarding their rights and options in this ongoing case. As the deadline approaches, stakeholders are urged to act quickly. Follow updates and further information on platforms like LinkedIn, X, or Facebook from Faruqi & Faruqi, LLP to stay informed on developments related to ModivCare and potential financial recourse.
Topics Financial Services & Investing）
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