#United States #New York #Faruqi & Faruqi #Investor Claims #ModivCare

Overview of Investigation by Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP, a renowned national securities law firm, has announced an investigation into potential legal claims regarding ModivCare, Inc. (NASDAQ: MODV). This investigation is primarily aimed at assisting investors who may have suffered financial losses following events that occurred between November 3, 2022, and May 3, 2023. The firm emphasizes the urgency of this matter, as the deadline to apply for the role of lead plaintiff in a federal securities class action is March 31, 2025.

The Background

ModivCare, known for its comprehensive integrated care solutions across various healthcare sectors, is now facing legal scrutiny as allegations surface regarding the company's compliance with federal securities laws. The law firm claims that ModivCare and its executives may have engaged in fraudulent practices by making misleading statements about their operations and financial conditions.

Key Allegations Against ModivCare

The complaint against ModivCare asserts that the company may have misled investors by not disclosing critical information, including:

• - Negative impacts on their adjusted EBITDA due to contract renegotiations and pricing accommodations.
• - A lack of sufficient liquidity to cover financial obligations.
• - Misinformation regarding the company's operational health and growth prospects, which may have influenced investor decisions.

These omissions are believed to have contributed to significant declines in the stock’s market value, leading to substantial losses for investors. For instance, on September 16, 2024, ModivCare revised its 2024 Adjusted EBITDA projection downward, resulting in a nearly 10% drop in stock price on the same day due to high trading volume.

Legal Implications

The role of lead plaintiff is crucial in securities class actions, as this person represents the interests of all affected investors. They will guide the litigation process and potentially influence the direction of the case. However, any investor can opt to remain a class member without taking on the lead role.

It’s imperative for those impacted to act swiftly. To become involved or to learn more about their rights, investors are encouraged to contact Faruqi & Faruqi directly. The firm is particularly keen on gathering information from anyone who may have insights into ModivCare's operations, including employees, shareholders, and whistleblowers.

For investors looking for assistance, the firm’s partner Josh Wilson can be reached directly at either 877-247-4292 or 212-983-9330 (Ext. 1310). Additional details about the ongoing investigation and class action lawsuit can also be found on their website at Faruqi & Faruqi.

Conclusion

The investigation led by Faruqi & Faruqi, LLP highlights the critical situation facing ModivCare investors. With a looming deadline for lead plaintiff applications, affected individuals should evaluate their legal options promptly. Engaging with trusted legal counsel will be vital for navigating the complexities of this situation.