#USA #Los Angeles #Securities Fraud #Investor Rights #ModivCare

Legal Action Against ModivCare: Investors Unite

Introduction
On February 19, 2025, Glancy Prongay & Murray LLP announced a critical opportunity for investors who suffered financial losses in their investments in ModivCare, Inc. (NASDAQ: MODV). A class action lawsuit has been initiated, allowing aggrieved investors to potentially lead the charge against the alleged securities fraud perpetuated by the company. This situation highlights the risks associated with investments and the importance of transparency in corporate communication.

What Does the Lawsuit Entail?

The crux of the complaint revolves around allegations that ModivCare’s executives failed to disclose vital information to their investors between November 3, 2022, and September 15, 2024. The lawsuit outlines several key grievances:

1. Deteriorating Free Cash Flow: Investors were reportedly misled regarding ModivCare's non-emergency medical transportation (NEMT) contracts, which the lawsuit claims negatively affected the company’s financial health, particularly its free cash flow.
2. Inaccurate Financial Statements: ModivCare reportedly renegotiated contracts and made pricing accommodations that adversely influenced the company’s adjusted EBITDA, calling into question the validity of their previous positive financial outlooks.
3. Insufficient Liquidity: The lawsuit also raises concerns over the company's liquidity, suggesting that investors were not adequately informed about the financial stability of ModivCare, which could have influenced their investment decisions.
4. Misleading Positive Statements: Throughout the mentioned period, the defendants made numerous positive assertions about the company's business and operational prospects, which the lawsuit claims lacked a reasonable basis, thereby misleading investors.

How Investors Can Get Involved

Eligible investors who believe they have experienced losses due to ModivCare's actions are urged to act before the deadline of March 31, 2025. To participate in the class action lawsuit, or to get additional information, interested individuals are encouraged to reach out to legal representatives from Glancy Prongay & Murray LLP.

Participation Steps

• - Contact Details: Individuals can contact Charles Linehan, Esq., through email or by calling the listed phone numbers provided in the announcement.
• - Information Required: It is advisable to include relevant details such as your mailing address, phone number, and the number of shares purchased when contacting the legal firm.
• - Legal Representation: While participation in the suit does not necessitate immediate action, investors are encouraged to retain counsel of their choice to ensure their rights are protected.

Conclusion

This development represents a significant moment for ModivCare investors, providing a channel to seek restitution for their losses. The situation also serves as a stark reminder of the potential consequences of corporate misrepresentation and the importance of accountability in the financial markets. As the lawsuit unfolds, affected investors will be closely monitoring the proceedings, hoping for a resolution that rectifies their grievances and promotes transparency moving forward.

For more updates on this case and other relevant legal actions, following Glancy Prongay & Murray LLP on their social media platforms is recommended. Stay informed and ensure that your investment rights are upheld.