Important Deadline for ModivCare Investors: Class Action Lawsuit Update

Glancy Prongay & Murray LLP is reminding investors about the critical March 31, 2025 deadline for filing a lead plaintiff motion in the class action lawsuit regarding ModivCare, Inc. (“ModivCare” or the “Company”) MODV. This action affects those who purchased or acquired ModivCare securities between November 3, 2022, and September 15, 2024, known as the “Class Period.”

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What Lead to This Lawsuit?

On May 4, 2023, ModivCare announced its first quarter results for 2023, showing a decline in cash flow from operations. The market reacted swiftly, with ModivCare’s stock diving by $11.30, or 16.3%, ending at $58.00 per share on the same day.

Later, on August 3, 2023, investors learned about a “large payable balance” that affected cash flow during the second quarter. After this announcement, the stock fell by $2.86, or 7.5%, to close at $35.38 per share on August 4, 2023.

Fast forward to February 23, 2024, when the Company’s fourth quarter financial results showed ongoing negative cash flow trends. The stock plummeted by $17.25, or 39.3%, closing at $26.62 per share that day.

Investors were further shaken on September 12, 2024, when ModivCare announced plans to seek additional capital to boost its liquidity. The stock tumbled by $18.43, or 59.1%, closing the day at $12.76 per share.

Just four days later, on September 16, 2024, ModivCare revised its 2024 Adjusted EBITDA guidance downward from $185–$195 million to a new range of $170–$180 million. This news caused an additional decrease of $1.40, or 9.9%, leading to a closing price of $12.72 per share, compounding losses for investors.

What Are the Allegations?

The class action complaint alleges that during the Class Period, Defendants made false or misleading statements and failed to disclose critical concerns about the Company’s performance. Allegations include that certain contracts led to a decline in free cash flow, negatively influenced adjusted EBITDA, and indicated a severe lack of liquidity. These omissions rendered Defendants’ optimistic statements misleading throughout that time.

If you bought or acquired ModivCare securities during the Class Period, you have until March 31, 2025 to request your appointment as the lead plaintiff in this lawsuit.

Get In Touch to Join or Learn More:

For more information regarding this action or if you have questions about your rights, please reach out to:

Charles Linehan, Esq.

Glancy Prongay & Murray LLP

1925 Century Park East, Suite 2100

Los Angeles, California 90067

Email: shareholders@glancylaw.com

Telephone: 310-201-9150

Toll-Free: 888-773-9224

Visit us at www.glancylaw.com.

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If you send an inquiry through email, please provide your mailing address, phone number, and the number of shares you purchased.

You don’t need to take any action now to be part of this class action; you can choose and retain a lawyer, or remain an absent member without any action.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20250206144358/en/

Glancy Prongay & Murray LLP

1925 Century Park East, Suite 2100

Los Angeles, CA 90067

Charles Linehan

Email: shareholders@glancylaw.com

Telephone: 310-201-9150

Toll-Free: 888-773-9224

Visit our website at: www.glancylaw.com.