ModivCare Inc. Faces Class Action Lawsuit: Important Information for Affected Investors

Class Action Lawsuit Against ModivCare Inc.

On February 25, 2025, the law firm Levi & Korsinsky LLP announced a class action securities lawsuit involving ModivCare Inc., traded on NASDAQ under the ticker MODV. Investors who faced losses due to alleged securities fraud between November 3, 2022, and September 15, 2024, now have an opportunity to seek compensation. The deadline for investors to join is March 31, 2025.

Background of ModivCare Inc.

ModivCare is a company that provides technology-enabled healthcare services, primarily focusing on non-emergency medical transportation (NEMT). The firm facilitates access to healthcare services for patients, but recent allegations have raised serious concerns about its financial operations and disclosures to investors.

The Lawsuit Details

According to the filed complaint, the lawsuit claims that the defendants engaged in securities fraud by making misleading statements and concealing critical information regarding contracts associated with ModivCare's NEMT segment. Specific allegations suggest that these contracts adversely affected the company’s free cash flow and financial stability. As a result, investors were not fully informed about the company's deteriorating financial conditions, leading to significant losses.

The allegations can be summarized as follows:
1. Contract Issues: Issues arose from certain contracts that negatively impacted ModivCare's adjusted EBITDA due to renegotiations and pricing accommodations.
2. Liquidity Concerns: There were insufficient liquidity levels which were not disclosed to investors, heightening concerns about the company's operational viability.
3. Misleading Communication: Positive statements made by the company about its business outlook did not align with the underlying financial reality.

What Affected Investors Should Do

Investors who suffered losses during the specified period are encouraged to consider filing a claim to potentially become a lead plaintiff in the case. It’s essential to note that you do not need to be lead plaintiff to receive benefits from any possible recovery. Levi & Korsinsky LLP offers this service at no out-of-pocket cost to investors. To secure your position, contact the firm’s representative, Joseph E. Levi, Esq., via email or phone stated in their announcement.

The Firm Behind the Lawsuit

Levi & Korsinsky LLP has a notable history of advocating for shareholders' rights, with a track record of recovering hundreds of millions for investors in various securities litigation cases. Over the last two decades, the firm gained prominence in the legal landscape, earning recognition in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, establishing itself as one of the leading securities litigation firms in the United States.

Conclusion

For investors with concerns about their investments in ModivCare, this class action lawsuit presents a potential avenue for recouping losses. With the deadline for joining the class action approaching on March 31, 2025, it is crucial for affected individuals to take timely action. For more information and details regarding participation, potential plaintiffs may direct their inquiries to Levi & Korsinsky contact resources.

Remember, proactive engagement can be critical in navigating these legal landscapes to protect your investment interests.