Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired ModivCare, Inc. (“ModivCare” or the “Company”) (NASDAQ: MODV) securities between November 3, 2022 and September 15, 2024, inclusive (the “Class Period”). ModivCare investors have until March 31, 2025 to file a lead plaintiff motion.

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What Happened?

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, ModivCare’s stock price fell $11.30, or 16.3%, to close at $58.00 per share on May 4, 2023, thereby injuring investors.

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, ModivCare’s stock price fell $2.86, or 7.5%, to close at $35.38 per share on August 4, 2023.

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, ModivCare’s stock price fell $17.25, or 39.3%, to close at $26.62 per share on February 23, 2024.

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, ModivCare’s stock price fell $18.43, or 59.1%, to close at $12.76 per share on September 12, 2024.

Then, 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, ModivCare’s stock price fell $1.40, or 9.9%, to close at $12.72 per share on September 16, 2024, thereby injuring investors further.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) certain contracts used in ModivCare’s NEMT segment caused the Company’s free cash flow to deteriorate; (2) contract renegotiations and pricing accommodations negatively impacted the Company’s adjusted EBITDA; (3) the Company had insufficient liquidity; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired ModivCare securities during the Class Period, you may move the Court no later than March 31, 2025 to request appointment as lead plaintiff in this putative class action lawsuit.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

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 our website at www.glancylaw.com.

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If you inquire by email, please include your mailing address, telephone number and number of shares purchased.

To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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