#United States #New York #Class Action #Pomerantz Law Firm #ModivCare

Pomerantz Law Firm Alerts Investors on ModivCare

The Pomerantz Law Firm recently announced the filing of a class action lawsuit against ModivCare, Inc. (NASDAQ: MODV). This legal action is significant for investors who have sustained financial losses linked to this company, as it raises critical questions about alleged securities fraud and other unlawful business activities associated with the company's leadership.

Key Details of the Lawsuit

The lawsuit contends that ModivCare and certain executives may have engaged in practices that misled investors, affecting their financial interests. Investors who bought shares during the specified class period are urged to take part in the proceedings.

Those affected have until March 31, 2025, to apply as Lead Plaintiffs. Interested parties should contact the firm, providing crucial information such as their mailing address, telephone number, and number of shares acquired. This outreach is vital for those who wish to ensure their voice and claims are heard during the litigation process.

Background on ModivCare's Financial Struggles

The situation escalated when ModivCare released its first-quarter financial results on May 4, 2023. During an earnings call, Chief Financial Officer Kenneth Shepard revealed a notable reduction in operational cash flow. This troubling news promptly led to a decline in the stock price—shedding $11.30 per share or 16.31%, as shares closed at $58.00 the same day.

Subsequent reports, including a August 3, 2023 update for the second quarter, further revealed a worrying expansion of payables that considerably impacted ModivCare's cash flow. Following this statement, the stock dropped by $2.86 or 7.48%, settling at $35.38 per share.

By February 23, 2024, the company’s precarious financial position was highlighted again when CEO L. Heath Sampson announced negative cash flow during the fourth quarter of 2023, with expectations for further declines in the first half of the fiscal year 2024. Following this revelation, the stock plummeted by $17.25 per share or 39.32%, closing at $26.62.

On September 12, 2024, ModivCare disclosed plans to seek additional capital through a registration statement to better manage its liquidity. This announcement led to another steep decline, with shares tripping $18.43, a staggering 59.09% drop, finishing at $12.76.

Moreover, additional news on September 16, 2024 detailed a drastic cut in the company’s guidance on 2024 Adjusted EBITDA, leading to a further drop of $1.40—or 9.92%, with the stock standing at $12.72.

About Pomerantz LLP

Pomerantz LLP, headquartered in major cities including New York and London, is recognized for its proficiency in corporate, securities, and antitrust class litigation. Established by the late Abraham L. Pomerantz, the firm has a historical legacy of advocating for victims of corporate misconduct and securities fraud. The firm has successfully recovered billions for class members over more than eight decades, cumulatively reinforcing its reputation in this particular legal landscape.

For more details about the lawsuit or to catch up on any updates, investors can visit Pomerantz Law Firm's website.

In conclusion, this class action against ModivCare serves as a vital reminder for investors: staying informed and proactive in the face of potential losses is crucial. As the deadlines approach, action is recommended for those impacted by this unfolding legal scenario.