ModivCare, Inc. Class Action Lawsuit Update: Johnson Fistel announces that shareholders with losses

Johnson Fistel, LLP announces filing a class action lawsuit on behalf of investors in ModivCare, Inc. (NASDAQ: MODV). The lawsuit aims to recover damages for investors who purchased securities between November 3, 2022, and September 15, 2024. Investors have until March 31, 2025, to petition the Court for appointment as lead plaintiff in the litigation.

The Class Action claims that Defendants made false and misleading statements and omissions about the Company’s business, financial situation, and prospects during the Class Period. Specifically, the defendants deceived the market about the potential of their contracts to steady cash flow.

As the reality about ModivCare’s operation became public, the company’s stock price fell precipitously, damaging investors. For example, on September 16, 2024, before market hours, ModivCare released a press release on Form 8-K with the Securities and Exchange Commission titled “Modivcare Provides Financial Update.” The Company changed its 2024 Adjusted EBITDA projection range from $185-$195 million to $170-$180 million, “primarily due to NEMT segment pricing adjustments made to retain and expand key client relations strategically.” 

On this news, the Company’s stock price declined $1.40, or roughly 10%, from $14.12 per share on September 15, 2024, to close at $12.72 on September 16, 2024, despite cumbersome trading activity. Investor case Steps: Shareholders who suffered losses during the class period have until March 31, 2025, to petition the court to become lead plaintiffs. A lead plaintiff will direct the class-action lawsuit on behalf of all other class members. The lead plaintiff can hire their preferred law firm to handle the class-action case. An investor’s right to share any potential future recovery from the class action case is not contingent on serving as lead plaintiff.