Faruqi & Faruqi Alerts Investors on ModivCare's Class Action Lawsuit Details and Deadlines

Attention ModivCare Investors: Important Information About Class Action Lawsuit

Faruqi & Faruqi, LLP, a prominent national law firm specializing in securities litigation, has made significant strides in advocating for investors. They are currently investigating potential claims against ModivCare, Inc. (NASDAQ: MODV) and are emphasizing critical deadlines and opportunities for affected investors.

What’s Happening?

The law firm is reaching out to investors who may have incurred losses exceeding $50,000 in ModivCare between November 3, 2022 and May 3, 2023. A class action lawsuit has been filed, and Faruqi & Faruqi encourages these investors to consider their legal rights and options. The firm specifically notes the impending deadline of March 31, 2025, for those interested in becoming lead plaintiffs, which involves taking a more active role in the litigation process.

Allegations Against ModivCare

The complaint outlines serious allegations against ModivCare and its executives, asserting violations of federal securities laws through false and misleading statements regarding the company’s financial health. Key issues cited include issues with contract renegotiations and pricing accommodations that negatively affected the company's adjusted EBITDA, alongside concerns over the liquidity status of the firm. As these fraudulent actions came to light, the stock price of ModivCare declined significantly, causing considerable financial harm to its investors.

For instance, a press release on September 16, 2024, updated investors about a downward revision of the expected 2024 Adjusted EBITDA, dropping from a range of $185-$195 million to $170-$180 million. This announcement led to a notable decrease in ModivCare's stock price—falling nearly 10%. Such drastic changes have had profound effects on the investor community.

The Role of Lead Plaintiffs

In class action lawsuits, a lead plaintiff represents the group of investors in court. They are typically the individual or entity with the largest financial stake affected by the alleged wrongdoing. Becoming a lead plaintiff is an important role as it involves directing the litigation on behalf of the class, although not all affected investors must take this role. There are risks and benefits to consider, and those interested are advised to consult with legal counsel.

Call to Action: How to Get Involved

Faruqi & Faruqi urges any investors with insights or knowledge about ModivCare's operations—including whistleblowers, former employees, and other stakeholders—to reach out. The firm is also emphasizing that whether or not an investor chooses to serve as a lead plaintiff will not affect their eligibility to share in any recovery from the lawsuit.

For more information about the class action lawsuit against ModivCare and to understand how to get involved, investors can contact Faruqi & Faruqi directly via phone or visit their dedicated page online.

The firm remains committed to protecting investor rights and ensuring justice is served. Keep an eye on this developing situation, especially as the deadline approaches. Interested parties should not hesitate to seek professional legal advice to navigate their options.

Conclusion

This ongoing case serves as a reminder of the importance of vigilance in the investment community. With law firms such as Faruqi & Faruqi advocating for affected investors, there is a pathway to obtaining justice for those who feel wronged. Ensure you stay informed and aware of your rights if you have invested in ModivCare during the specified period.