#USA #New York #Class Action #Levi Korsinsky #ModivCare

Overview

Levi & Korsinsky, LLP has alerted investors involved with ModivCare Inc. about an ongoing class action securities lawsuit that aims to secure compensation for those adversely affected by the company's alleged fraud. This notification is crucial for shareholders as the deadline to appoint a lead plaintiff is approaching, specifically set for March 31, 2025.

Class Definition

The class action lawsuit encompasses claims made by investors who faced financial losses due to ModivCare's misrepresentation during the period from November 3, 2022, to September 15, 2024. The lawsuit's objective is to recover damages incurred due to alleged securities fraud perpetrated by company executives.

Case Details

In the filed complaint, it was asserted that ModivCare concealed the detrimental impact of certain contracts within its Non-Emergency Medical Transportation (NEMT) segment. The allegations state that due to these contracts, the company's free cash flow was negatively affected, leading to several significant issues:
1. Deteriorating EBITDA: Contract renegotiations and necessary pricing adjustments adversely impacted ModivCare's adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
2. Insufficient Liquidity: The company faced challenges concerning liquidity, raising further questions about its financial stability.
3. Misleading Statements: Positive statements made by company officials regarding business conditions, operations, and future prospects were deemed materially misleading or lacking a reasonable foundation.

What’s Next for Investors?

Investors who experienced losses during the stated timeframe must act swiftly. There is still time to get involved, as those affected have until March 31, 2025, to seek appointment as a lead plaintiff. However, it is important to note that participation in any financial recovery does not hinge on taking this role; class members can opt to be involved without being the lead plaintiff.

No Cost to Class Members

The process to participate in this class action comes at no out-of-pocket costs to the class members. This means that investors do not need to incur any fees or expenses upfront to claim their potential compensation.

Why Levi & Korsinsky?

Levi & Korsinsky boasts a successful history, having recovered hundreds of millions of dollars for shareholders over the past two decades. The firm's robust team, numbering over 70 professionals, specializes in complex securities litigation. For multiple consecutive years, they have been recognized among the top securities litigation firms by ISS Securities Class Action Services, fostering trust and credibility among investors.

Contact Information

ModivCare investors seeking to explore their rights or gain additional information regarding the class action lawsuit can reach out to Levi & Korsinsky, LLP through the following contacts:

• - Email: [email protected]
• - Phone: (212) 363-7500
• - Address: 33 Whitehall Street, 17th Floor, New York, NY 10004

For those interested in staying informed, the case provides an opportunity to engage with seasoned legal professionals who have established expertise in representing investors. Don't hesitate to leverage this chance to safeguard your investment interests and possibly recover losses sustained due to the alleged fraud perpetrated by ModivCare.