#United States #Los Angeles #Securities Fraud #investors #ModivCare

ModivCare Securities Fraud Lawsuit Opportunity

On March 5, 2025, Glancy Prongay & Murray LLP issued a call to investors who have experienced financial losses related to their investments in ModivCare, Inc. (NASDAQ: MODV). These investors now have the opportunity to participate in a class action lawsuit addressing allegations of securities fraud against the company. The lawsuit is centered on the claim that between November 3, 2022, and September 15, 2024, ModivCare's executives failed to disclose critical information regarding the financial health of its Non-Emergency Medical Transportation (NEMT) segment.

The Allegations

The complaint outlined several key points where transparency was lacking on the part of ModivCare's leadership:

• - Deterioration of Free Cash Flow: It is alleged that the company did not inform investors that certain contracts within the NEMT segment had resulted in a significant decline in free cash flow, contrary to the positive outlook presented to shareholders.

• - Impact on Adjusted EBITDA: The legal filing indicates that renegotiations of contracts and pricing adjustments adversely affected ModivCare's adjusted EBITDA, which is crucial for evaluating the company's profitability.

• - Liquidity Shortcomings: The complaint mentions that the company faced liquidity issues during this period, which was not adequately communicated to investors.

• - Misleading Statements: Consequently, the optimism expressed by ModivCare's executives about the company's operational capabilities and future prospects was viewed as materially misleading and lacking a reasonable basis.

How to Get Involved

For investors who suffered losses from their ModivCare holdings, there is an opportunity to become a lead plaintiff by participating in the lawsuit. Interested individuals are encouraged to act quickly, as the deadline to join the class action is March 31, 2025. By contacting Glancy Prongay & Murray LLP, potential plaintiffs can learn further details about their rights and the process ahead.

The firm emphasizes that no immediate action is required to be a part of the class action; interested parties can consult legal counsel or choose to remain passive participants.

Contact Information

Charles Linehan, Esq., a representative from Glancy Prongay & Murray LLP, is available for queries related to the lawsuit. He encourages investors to reach out via the following:

• - Address: 1925 Century Park East, Suite 2100, Los Angeles, California 90067
• - Email: email protected]
• - Phone: 310-201-9150 (Toll-Free: 888-773-9224)
• - Website: [www.glancylaw.com

Potential class members are reminded to include relevant personal details such as their contact information and the number of shares purchased when reaching out via email.

Conclusion

This class action represents a significant opportunity for investors affected by ModivCare’s alleged fraudulent practices to seek justice. With the critical deadline approaching, those who believe they have been wronged are urged to consider their options promptly and not let this opportunity pass.

Stay informed and connected as updates regarding the lawsuit and investor relations will be made available through Glancy Prongay & Murray LLP's social media channels, including LinkedIn, Twitter, and Facebook.

Investors are reminded that participating in this class action could provide them the means to recover their losses linked to ModivCare's unfulfilled promises regarding its financial health and business prospects.