ModivCare, Inc. (NASDAQ: MODV)

This lawsuit is for anyone who acquired securities in ModivCare, Inc. (NASDAQ: MODV) from November 3, 2022 through September 15, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors by failing to timely inform investors that the Company was engaged in too many contracts that were losing money for the Company.

On May 4, 2023, ModivCare released its first quarter 2023 financial results, revealing that it had experienced a reduction of cash flow from operations. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on August 3, 2023, after-market hours, ModivCare released its second quarter 2023 financial report, disclosing that the Company had experienced the expansion of a “large payable balance” that had impacted its cash flow from operations during the quarter. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on February 23, 2024, ModivCare released its fourth quarter 2023 financial results, revealing that the Company suffered negative cash flow during the quarter, and that the trend was expected to continue for the first half of fiscal year 2024. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on September 12, 2024, ModivCare disclosed that it would “undertak[e] actions to seek additional capital, including filing a shelf registration statement” with the SEC to improve its liquidity. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on September 16, 2024, ModivCare provided a financial update, revising its 2024 Adjusted EBITDA guidance range from $185–$195 million to $170–$180 million, “primarily due to NEMT segment pricing accommodations made to strategically retain and expand key customer relationships.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in ModivCare, Inc. (MODV) Investors Who Lost Money – Contact Law Offices of Howard G. Smith About Securities Fraud Investigation | Business Wire Inc. (NASDAQ: MODV) from November 3, 2022 through September 15, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.