Levi & Korsinsky Informs ModivCare Shareholders of Class Action and Deadline
Overview of the Class Action Lawsuit Against ModivCare Inc.
Levi & Korsinsky LLP has recently notified investors of ModivCare Inc. (NASDAQ: MODV) regarding a class action securities lawsuit. This legal action is aimed at recovering losses incurred by those affected by alleged securities fraud during the period from November 3, 2022, to September 15, 2024. The lawsuit's outcome could significantly affect the investors who have suffered financial losses during this timeframe.
Background on ModivCare Inc.
ModivCare is a company that offers technology-enabled healthcare services, primarily focusing on non-emergency medical transportation (NEMT) and other related offerings. The allegations that prompted this class action revolve around the company's operational statements and financial performance during the specified period. Investors allege that they were misled by the information provided by the company, which may have masked serious underlying issues impacting the company's financial health.
Key Allegations in the Lawsuit
The filed complaint states that ModivCare’s management made several false representations regarding their business conditions and operational success. Among the key issues are:
- - Deterioration of Free Cash Flow: Allegations indicate that certain contracts in the NEMT segment were not adequately disclosed, leading to a decline in the company's free cash flow.
- - Impact on Adjusted EBITDA: The adjustments made to contracts and pricing were said to adversely affect the company’s adjusted EBITDA, leaving stakeholders unaware of the realities affecting the company’s earning potential.
- - Liquidity Concerns: Claims detailed that ModivCare faced liquidity challenges not disclosed to investors, which could exacerbate concerns over an investment in the company.
The class action brings attention to misleading statements allegedly made by ModivCare concerning its operations and financial projections, raising questions about the transparency of the firm's public communication with its investors.
Important Dates for Investors
Investors who suffered losses due to ModivCare’s alleged misrepresentations have a critical deadline approaching. They have until March 31, 2025, to apply to be recognized as a lead plaintiff in the lawsuit. This opportunity allows affected shareholders to take a proactive step towards seeking compensation for their losses, although participation in the lawsuit does not necessitate acting as a lead plaintiff to benefit from any potential recovery.
No Financial Risk to Class Members
One of the most reassuring aspects for those involved in the class is that participating in this lawsuit does not require any out-of-pocket costs or fees. Class members may be entitled to compensation without risking their own financial resources upfront, making it a low-risk opportunity to pursue legal action against the company for any alleged wrongdoing.
The Reputation of Levi & Korsinsky
Levi & Korsinsky has built a notable reputation over the past two decades, successfully recovering hundreds of millions of dollars for shareholders in similar cases. The firm has a commendable track record in complex securities litigation, underscored by its team of over 70 professionals dedicated to serving their clients effectively. Notably, Levi & Korsinsky has consistently ranked among the top securities litigation firms in the United States, as noted by ISS Securities Class Action Services.
How to Get Involved
Investors seeking further information or wish to inquire about their potential involvement in the lawsuit can reach out directly to Levi & Korsinsky. Interested parties can contact Joseph E. Levi or Ed Korsinsky via email or phone, details of which are provided below.
Contact Information:
- - Levi & Korsinsky LLP
New York, NY 10004
Email: info@zlk.com
Phone: (212) 363-7500
In joining this class action, investors can not only seek compensation but also take a stand against misleading practices within corporate governance, contributing to the call for transparency and accountability in the financial sector.
This situation serves as a reminder for investors to remain vigilant and questioning concerning the information that publicly traded companies supply regarding their financial health. Engaging in these legal processes can empower shareholders and support a culture of integrity and accountability in business practices.
Topics Financial Services & Investing）
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