#United States #New York #class action lawsuit #Pomerantz Law Firm #ModivCare

Recent Developments in ModivCare Class Action Lawsuit

The Pomerantz Law Firm, a leading player in securities and antitrust class litigation, has taken significant action by filing a class action lawsuit against ModivCare, Inc. (NASDAQ: MODV). This lawsuit targets the firm and certain officers and directors for allegedly engaging in unlawful business practices that may have misled investors. As of now, individuals who suffered financial losses while investing in ModivCare are encouraged to reach out to the firm to discuss their options.

Background Information

On February 25, 2025, Pomerantz LLP issued a reminder to investors who incurred losses related to their investments in ModivCare, emphasizing the urgency of their situation. Investors have a limited window until March 31, 2025, to apply to be designated as Lead Plaintiff in the upcoming proceedings. This is particularly important for those who acquired ModivCare securities during the designated class period.

The complaints stem from several instances where ModivCare disclosed troubling financial results, which significantly impacted its stock prices. These disclosures, paired with operator statements during earnings calls, will play a crucial role in the legal proceedings.

Notable Financial Disclosures

1. May 4, 2023: ModivCare experienced a stark drop in operational cash flow, resulting in a stock price decline of 16.31% in one day.

2. August 3, 2023: Another earnings call revealed an escalating payable balance that further strained cash flow, leading to another sharp decline in stock value by 7.48% the following day.

3. February 23, 2024: The fourth-quarter results disclosed adverse cash flow, with projections indicating similar negative trends for the upcoming financial year. This announcement triggered a staggering 39.32% drop in stock value.

4. September 12, 2024: ModivCare disclosed plans to improve liquidity through additional capital-seeking action, which resulted in a devastating 59.09% decline in stock price following the announcement.

5. September 16, 2024: The company revised its Adjusted EBITDA guidance downwards, causing stock prices to decrease once more by nearly 10%.

These events underline the significant turmoil surrounding ModivCare, culminating in the firm’s decision to seek legal counsel from Pomerantz LLP. It is critical for investors to understand their rights and the potential remedies available under securities litigation.

How to Get Involved

Investors who believe they qualify for inclusion in the class action are urged to contact Danielle Peyton at Pomerantz’s New York office. Direct communication details, such as email and phone number, have been provided for convenience. Interested parties should reference their investment details to facilitate a thorough review of their claims.

About Pomerantz LLP

With decades of experience, Pomerantz LLP has built a reputable legacy advocating for victims of corporate malpractice and securities fraud. The firm has successfully recovered billions for class members, underlining its critical role in safeguarding investor interests. By following the optimal channels, affected investors can tap into this essential legal support, ensuring they receive the justice they deserve.

For further information and to download the complaint, please visit Pomerantz Law Firm’s website. The firm emphasizes that prior results do not guarantee similar outcomes, reminding investors of the complexities inherent in legal proceedings of this nature.

Conclusion

As ModivCare continues to navigate its operational challenges and investor concerns deepen, affected stakeholders must remain vigilant. The looming deadlines set by the Pomerantz Law Firm serve as an imperative call to action for investors to protect their interests and possibly reclaim losses incurred during their engagements with this fluctuating stock.