Investors Urged to Lead Class Action Against ModivCare's Securities Fraud Allegations
In a recent announcement, the Rosen Law Firm, a renowned global investor rights law firm, emphasized a critical opportunity for investors of ModivCare Inc., a company trading on NASDAQ under the ticker MODV. Those who purchased ModivCare securities between November 3, 2022, and September 15, 2024, are encouraged to take immediate action due to an impending deadline for leading a class action lawsuit on March 31, 2025.
What Investors Need to Know
If you are among the investors who acquired shares during the specified class period, you may be eligible for compensation through this legal action. Notably, the Rosen Law Firm operates on a contingency fee basis, meaning you won't need to pay out of pocket to join the lawsuit. The firm seeks to aid investors in recovering losses incurred as a result of alleged misrepresentations made by ModivCare's management regarding the company's financial performance and operational health.
Joining the Class Action
To participate in the ModivCare class action, investors can navigate to the Rosen Law Firm's website, where they can submit their information confidently and securely. Alternatively, they can reach out directly to attorney Phillip Kim at the firm by calling the toll-free number 866-767-3653 or via email at [email protected] It's important for prospective class members to understand that while a class action lawsuit has been initiated, no class has yet been certified.
Background of the Allegations
The class action lawsuit cites significant claims against ModivCare, suggesting that the company’s management provided materially false or misleading statements. Specifically, the lawsuit argues that ModivCare's executives failed to disclose detrimental facts about its non-emergency medical transportation (NEMT) segment, which has directly impacted its free cash flow and future profitability.
The issue arises from alleged contract challenges within the NEMT division, leading to adverse effects on ModivCare's adjusted EBITDA, liquidity, and overall operational statements. When these facts were unveiled to the market, resultant investor damages spurred the filing of legal claims.
Selecting the Right Legal Counsel
Rosen Law Firm stresses the importance of choosing a law firm that has a proven track record in representing investors. It has distinguished itself in past cases, including achieving the largest settlement of securities class action claims against a Chinese company at that time. They have consistently ranked high in terms of recoveries on behalf of investors and have facilitated significant settlements over the years. In 2019, for instance, the firm secured upwards of $438 million for investors affected by securities fraud.
Next Steps for Investors
Investors wishing to serve as lead plaintiffs must act promptly, as they play a pivotal role in guiding the class action litigation on behalf of all impacted investors. Being a lead plaintiff entails more responsibility, including monitoring the progress of the case and making key decisions regarding its direction.
Investors who choose not to participate actively can remain absent class members and are still entitled to any future recoveries the class may secure without needing to take specific legal actions immediately.
Conclusion and Updates
As developments on this case progress, concerned investors are encouraged to stay informed by following the Rosen Law Firm on social media platforms like LinkedIn, Twitter, and Facebook. This lawsuit represents a significant opportunity for affected investors to reclaim losses potentially caused by corporate negligence and misinformation. Investors are advised to exercise caution and due diligence while navigating their options in these legal proceedings.