A securities class action has been filed in the USDC – CO., against ModivCare, Inc. (MODV) (“ModivCare”or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired ModivCare securities between November 3, 2022, and September 15, 2024, both dates inclusive (the “Class Period”).
Defendant ModivCare provides a suite of integrated supportive care solutions for public and private payors and their members. Throughout the Class Period, ModivCare misled the market to believe certain contracts used in its non-emergency medical transportation (“NEMT”) segment mitigated risks to its free cash flow. In reality, the Company’s free cash flow deteriorated throughout the Class Period. When the truth began to reach the market, ModivCare’s stock price suffered significant declines, harming investors.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and/or misleading statements, as well as failed to disclose adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that certain contracts used in ModivCare’s NEMT segment caused the Company’s free cash flow to deteriorate and that, as a result:
(1) contract renegotiations and pricing accommodations negatively impacted the Company’s adjusted EBITDA;
(2) the Company had insufficient liquidity; and
(3) Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.
As a result of the Company’s press release titled “Modivcare Provides Financial Update.”, the Company’s stock price fell $1.40 or nearly 10%, from $14.12 per share on September 15, 2024, to close at $12.72 per share on September 16, 2024, on unusually high trading volume.
If you purchased ModivCare securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.