Deadline Approaches for ModivCare Securities Fraud Class Action

The Law Offices of Frank R. Cruz remind investors about the approaching March 31, 2025 deadline. This date marks the last chance for investors to join as lead plaintiffs in a class action lawsuit concerning securities fraud linked to ModivCare, Inc. (“ModivCare” or the “Company”) MODV. This class action is open to those who purchased ModivCare securities from November 3, 2022, to September 15, 2024, inclusive (the “Class Period”).

IF YOU ARE AN INVESTOR WHO LOST MONEY ON MODIVCARE, INC. (MODV), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.

Key Events Leading to the Lawsuit

On May 4, 2023, ModivCare reported its first quarter 2023 financial results, including a decline in cash flow from operations. Following this announcement, ModivCare’s stock price fell by $11.30, equating to a 16.3% drop, closing at $58.00 per share.

Later, on August 3, 2023, ModivCare disclosed a rise in its “large payable balance” in the second quarter financial report, which adversely affected its operational cash flow. This news resulted in a stock price decrease of $2.86, or 7.5%, bringing it to $35.38 per share on August 4, 2023.

Furthermore, on February 23, 2024, the Company reported negative cash flow for the fourth quarter of 2023 and anticipated continuation of this trend into the first half of fiscal year 2024. Following this revelation, ModivCare’s stock dropped $17.25, or 39.3%, closing at $26.62.

On September 12, 2024, the Company announced it would “seek additional capital,” including filing a shelf registration statement with the SEC to enhance liquidity. This news caused a significant decrease in the stock price, falling $18.43, or 59.1%, closing at $12.76 per share that day.

Just four days later, on September 16, 2024, ModivCare revised its 2024 Adjusted EBITDA guidance down from $185–$195 million to $170–$180 million. The revision was attributed to pricing adjustments made to retain key clients. Consequently, the stock fell $1.40, or 9.9%, settling at $12.72 per share, compounding the losses for investors.

Overview of the Lawsuit

The class action lawsuit claims that during the Class Period, defendants issued materially false and misleading statements, omitting crucial adverse facts concerning the Company’s business operations. These include: (1) the deterioration of free cash flow from certain contracts in ModivCare’s NEMT segment; (2) negative effects of contract renegotiations on adjusted EBITDA; (3) inadequate liquidity; and (4) the lack of reasonable basis for positive statements made by the defendants regarding the Company.

Important Deadline Reminder

If you purchased or acquired ModivCare securities during the specified period, please note that the deadline to seek lead plaintiff status in the securities fraud class action is March 31, 2025.

Contact Us for More Information

To learn more about this class action or address any questions regarding this announcement or your rights in relation to the lawsuit, please reach out to:

Frank R. Cruz

The Law Offices of Frank R. Cruz,

2121 Avenue of the Stars, Suite 800,

Century City, California 90067

Email: [email protected]

Phone: 310-914-5007

Website: www.frankcruzlaw.com

Follow us on Twitter: twitter.com/FRC_LAW

For inquiries via email, include your mailing address, phone number, and number of shares purchased.

No action is needed from you at this time to be part of the class action. You may choose to hire an attorney or remain an absent member. This announcement may be considered Attorney Advertising in certain jurisdictions under applicable ethics rules and laws.

View the original announcement on businesswire.com: https://www.businesswire.com/news/home/20250328941564/en/

The Law Offices of Frank R. Cruz, Los Angeles

Frank R. Cruz, 310-914-5007

[email protected]

www.frankcruzlaw.com