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ModivCare, Inc. Stockholders: Important Class Action Update

On February 25, 2025, Robbins LLP issued an alert for investors regarding a recent class action lawsuit impacting ModivCare, Inc. (NASDAQ: MODV). This legal action concerns shareholders who acquired or purchased the company's securities from November 3, 2022, through September 15, 2024. The class action aims to address significant allegations made against ModivCare, which may affect the rights and financial recoveries of investors involved.

Allegations Against ModivCare

The lawsuit revolves around allegations that ModivCare misled investors about its business outlook and financial health. Specifically, the complaint claims that the company failed to disclose crucial information regarding its Non-Emergency Medical Transportation (NEMT) segment, which reportedly harmed the company's liquidity and overall profitability. Key highlights from the lawsuit include:

1. Deteriorating Free Cash Flow: ModivCare's management did not inform shareholders that specific contracts within the NEMT division were causing a decline in free cash flow. This hidden financial issue posed risks to the company's stability.
2. Negative Impact on Adjusted EBITDA: The contract renegotiations and pricing adjustments resulted in adverse effects on the company's adjusted EBITDA, further questioning its financial integrity.
3. Misleading Statements: The claims suggest that public statements made by the company about its operational prospects were materially misleading, a serious issue that can severely impact investor trust.

As a result of these revelations, ModivCare's stock price experienced a significant drop, adversely impacting shareholders who were unaware of the underlying issues.

How to Get Involved

Investors who wish to take an active role in this class action lawsuit should be aware of the upcoming deadline for filing. The court requires those interested in becoming lead plaintiffs to submit the necessary documentation by March 31, 2025. The role of a lead plaintiff is critical; it allows an individual to represent the interests of all class members throughout the litigation process.

Important Information for Shareholders:

• - No Obligations: Investors should note that participating in the class action does not obligate them to engage further—they can remain as absent class members if they choose.
• - No Fees Required: Robbins LLP operates on a contingency fee basis, ensuring that shareholders will not incur any out-of-pocket expenses unless the firm successfully recovers funds on their behalf.

To learn more or to express your interest in participation, consider reaching out to Robbins LLP directly. This can be done through various communication channels:

• - Online: Complete the submission form available on their website.
• - Email: Contact attorney Aaron Dumas, Jr. for details on next steps.
• - Phone: Call Robbins LLP at (800) 350-6003 for immediate assistance.

About Robbins LLP

Founded in 2002, Robbins LLP is a leading law firm specializing in shareholder rights litigation. The firm is dedicated to assisting shareholders in recovering lost investments and advocating for improved corporate governance. By participating in this lawsuit, investors can play a part in holding corporate executives accountable for their actions while seeking restitution for financial damages incurred.

Stay Informed

If you want timely updates about this class action or similar cases involving corporate wrongdoing, it's advisable to sign up for Robbins LLP's Stock Watch service. This resource will notify you of any settlements or significant developments in the cases you are interested in.

In conclusion, ModivCare shareholders have a pivotal opportunity to participate in a class action that could potentially yield recovery for their investments. It’s important to act promptly and understand the implications of the ongoing lawsuit against ModivCare, Inc.