ModivCare Securities Class Action Lawsuit
Analysis based on 23 articles · First reported Feb 04, 2025 · Last updated Mar 30, 2025
The class action lawsuit against ModivCare, alleging misleading statements and insufficient liquidity, has negatively impacted ModivCare's stock price, causing a nearly 10% drop on September 16, 2024. This event highlights the risks associated with corporate transparency and financial reporting, potentially leading to increased scrutiny on companies in the healthcare and transportation sectors.
Rosen Law Firm and Faruqi & Faruqi are actively pursuing a class action lawsuit against ModivCare Inc. on behalf of investors who purchased securities between November 3, 2022, and September 15, 2024. The lawsuit alleges that ModivCare made materially false and/or misleading statements and failed to disclose adverse facts regarding its business operations. Specifically, it claims that certain contracts in ModivCare's non-emergency medical transportation (NEMT) segment led to a deterioration of free cash flow, negatively impacted adjusted EBITDA, and resulted in insufficient liquidity. The lawsuit points to ModivCare's revised 2024 Adjusted EBITDA guidance on September 16, 2024, as evidence of these issues, which caused a significant decline in ModivCare's stock price. Investors are encouraged to join the class action before the March 31, 2025, lead plaintiff deadline.
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