#United States #New York #Class Action #Levi & Korsinsky #ModivCare

Important Update for ModivCare Investors

Levi & Korsinsky, LLP has recently made an announcement that impacts investors in ModivCare Inc. (NASDAQ: MODV). They are notifying affected investors about a class action securities lawsuit filed against the company. This lawsuit aims to compensate those who suffered losses as a result of alleged securities fraud that occurred between November 3, 2022, and September 15, 2024.

Understanding the Class Action

The class action is designed to help investors who were adversely affected during this specified timeframe. The lawsuit alleges that the defendants engaged in fraudulent activities that misled investors about the true financial state of ModivCare. Specifically, the complaint claims that certain contracts within ModivCare's Non-Emergency Medical Transportation (NEMT) segment contributed to a significant decline in the company’s free cash flow. The ramifications of these contracts were serious, leading to reduced liquidity and negatively impacting the company’s adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

Key Allegations

The lawsuit outlines several serious claims against ModivCare’s management:
1. False Statements: Defendants purportedly made misleading statements regarding the company’s operational health and growth prospects.
2. Concealment of Financial Data: The complaint asserts that crucial financial information was concealed from investors, creating a deceptive picture of the company's profitability.
3. Contractual Implications: Complications arising from contract renegotiations appear to have exacerbated the company's financial difficulties.

What Can Affected Investors Do?

If you were an investor in ModivCare during the relevant period, it's crucial to act swiftly. The deadline to request that the court appoint you as lead plaintiff is March 31, 2025. However, participation as a lead plaintiff is not a requirement to receive compensation if the lawsuit succeeds.

Investors are encouraged to gather their documentation and consider submitting a claim. Those interested in more details about participating in the class action can follow the link provided in the initial announcement or they can reach out to Levi & Korsinsky directly.

No Upfront Costs for Participants

For potential class members, there is good news: if you qualify, you could receive compensation without any out-of-pocket expenses or fees. There are no costs associated with participating in this class action, making it an accessible avenue for investors looking to recover losses without financial risk.

Why Choose Levi & Korsinsky?

Levi & Korsinsky has a strong track record of securing substantial settlements for investors. Over the past 20 years, the firm has successfully represented shareholders in high-stakes securities litigation, earning a reputation as one of the leading firms in this area. Their expertise is evident, especially in complex legal cases involving investor claims.

With a dedicated team of more than 70 professionals, Levi & Korsinsky has consistently been recognized in ISS Securities Class Action Services' Top 50 Report, highlighting their commitment to supporting their clients. The firm emphasizes transparency and accountability, ensuring that every participant’s rights are prioritized throughout this legal process.

Contact Information

For further inquiries, investors can reach out to:

• - Joseph E. Levi, Esq.
• - Ed Korsinsky, Esq.
• - Address: 33 Whitehall Street, 17th Floor, New York, NY 10004
• - Phone: (212) 363-7500
• - Email: [email protected]

For more information, investors can visit their official website at zlk.com.

Final Thoughts

The class action lawsuit against ModivCare Inc. represents a significant moment for investors seeking accountability and recovery for their losses. It serves as a reminder of the importance of staying informed and proactive in the face of potential fraud. As developments unfold, investors should keep a close watch on updates related to this case.