#USA #New York #securities lawsuit #Faruqi & Faruqi #ModivCare

Investigation of ModivCare by Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP, a well-regarded securities law firm, is actively investigating potential legal claims against ModivCare, Inc., a company listed on NASDAQ under the symbol MODV. This inquiry is particularly focused on claims from investors who may have experienced losses exceeding $50,000 between November 3, 2022, and May 3, 2023. As the clock ticks down to the March 31, 2025 deadline for class action participation, the firm is urging affected investors to understand their rights.

Background on ModivCare

ModivCare provides essential services to the healthcare industry, primarily specializing in non-emergency medical transportation (NEMT) and related solutions. However, recent turmoil surrounding the company's financial disclosures has caught the attention of investors and legal analysts alike. Allegations have surfaced suggesting that ModivCare has potentially engaged in misleading business practices, resulting in an unfavorable impact on its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

The Investigation Process

The investigation conducted by Faruqi & Faruqi alleges that ModivCare’s executives may have violated federal securities laws in various ways. Key points raised include failures to disclose the ramifications of renegotiated contracts and the negative influence these have had on the company’s liquidity. Importantly, analysts argue that the upbeat portrayal of the company's performance has not been reflective of its true operational state, thus misleading shareholders.

On September 16, 2024, ModivCare disclosed a reduction in their financial guidance through a press release, causing the stock to drop by nearly 10%. This decline raises questions about the management's communication practices and may be pivotal for pursuing claims related to shareholder losses.

The Class Action Opportunity

Investors are informed that the lead plaintiff in a federal securities class action is the individual or entity that has the highest financial stake in the outcome and adequately reflects the interests of other class members. However, participation as a lead plaintiff is entirely optional; other investors can remain in the class without legally pursuing a leadership role.

For those who are interested in joining the class action, they can reach out to attorney James (Josh) Wilson of Faruqi & Faruqi directly. Investors are encouraged to share any information pertaining to potentially misleading practices, including insights from whistleblowers or former employees. This could be critical in building a comprehensive case against ModivCare.

How to Proceed

Affected investors should be proactive about their situations. Those who have incurred losses exceeding the specified threshold should contact Faruqi & Faruqi to evaluate their legal options. The firm has reported a history of recovering substantial sums for their clients, and they are committed to ensuring justice for those potentially harmed by ModivCare’s actions.

For additional details or if you're considering involvement in the class action, you can visit Faruqi & Faruqi’s official website or contact them at the numbers provided in previous press releases. Stay informed and take the necessary steps to protect your investment interests.