Important Legal Notice for ModivCare Inc. Investors

Author: Logan Wright Updated: 02-27-2025 01:31 PM

ModivCare Inc. Faces Class Action Lawsuit

In recent news, ModivCare Inc. is under scrutiny as a class action securities lawsuit has been initiated against the company. The law firm, Levi & Korsinsky, LLP, is reaching out to investors of ModivCare to represent their interests during this legal challenge. This lawsuit is a significant moment for stakeholders as it addresses crucial financial matters connected to the company.

Understanding the Class Action

This class action was filed to recover losses for investors who have potentially been impacted by allegations of securities fraud. The timeline for claims covers events that occurred between November 3, 2022, and September 15, 2024. This period is crucial for anyone who invested in ModivCare during these dates.

Key Definitions

A class action lawsuit is a legal action filed by a group of individuals who share a common interest—in this case, investors in ModivCare. They claim that misleading information and false statements were provided by the company regarding its financial health and business operations.

The Allegations

The lawsuit alleges that ModivCare's management made significant misrepresentations about their contracts, especially in their Non-Emergency Medical Transportation (NEMT) segment. The claim states that these false claims resulted in a significant decline in the company's free cash flow, raising concerns over liquidity and ultimately leading to adjustments that negatively affected the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA).

Next Steps for Investors

If you believe you qualify as a class member, it is essential to act quickly. The deadline to be designated as a lead plaintiff in this lawsuit is March 31, 2025. However, it’s important to remember that you do not need to take on this role to be eligible for any recovery that may arise from this lawsuit.

Potential No-Cost Compensation

Investors who are part of this class action may be entitled to compensation without any out-of-pocket costs or legal fees. This is a crucial aspect of the litigation, as it allows shareholders to seek justice without financial risks.

Why Choose Levi & Korsinsky?

Levi & Korsinsky has established a reputation for being a powerful ally in securities litigation over two decades. They have successfully recovered hundreds of millions for investors with a strong track record in handling complex financial cases. With a dedicated team of over 70 professionals, they are well-equipped to navigate the intricacies of securities law.

Contact Information

ModivCare investors are encouraged to reach out to Joseph E. Levi, Esq., at Levi & Korsinsky for more information. You can contact him via email at jlevi@levikorsinsky.com or by phone at (212) 363-7500.

Frequently Asked Questions

What is the class action lawsuit about?

The lawsuit involves allegations of securities fraud by ModivCare Inc., claiming that misleading information led to financial losses for investors.

Who can file a claim?

Any investor who purchased ModivCare shares between November 3, 2022, and September 15, 2024, may be eligible to file a claim.

What are the potential costs to file a claim?

There are no costs or fees for class members to participate in the lawsuit.

What does being a lead plaintiff entail?

A lead plaintiff would take an active role in the lawsuit process but is not necessary for recovery of losses.

How can I contact Levi & Korsinsky for more information?

You can reach out to Joseph E. Levi via email at jlevi@levikorsinsky.com or by phone at (212) 363-7500.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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