Bronstein, Gewirtz & Grossman, LLC Announces Class Action Lawsuit Against ModivCare, Inc.
New York, NY – March 10, 2025
Bronstein, Gewirtz & Grossman, LLC, a leading national securities fraud law firm, reminds investors that a class action lawsuit has been filed against ModivCare, Inc. (“ModivCare” or “the Company”) (NASDAQ:MODV) and certain of its officers. The lawsuit, which was filed in the United States District Court for the Southern District of New York, alleges that the Company and its officers violated the federal securities laws during the Class Period, which spans from November 3, 2022, to September 15, 2024.
Class Definition
This lawsuit seeks to recover damages on behalf of all persons and entities that purchased or otherwise acquired ModivCare securities during the Class Period. The complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, and financial condition.
Allegations of Securities Law Violations
According to the complaint, the defendants made false and/or misleading statements and/or failed to disclose that:
- ModivCare’s financial statements contained material misstatements and omissions;
- The Company was experiencing significant operational challenges;
- The Company’s revenue growth was due in part to improper billing practices;
- The Company’s healthcare partners were terminating contracts;
- The Company’s financial condition was weaker than represented;
Effect on Individual Investors
For individual investors, this class action lawsuit could mean potential financial recovery if they purchased ModivCare securities during the Class Period. If the allegations in the complaint are proven true, investors may be entitled to damages, which could include the difference between the purchase price and the value of their securities at the time of sale. It is important for investors to consult with their financial advisors and legal counsel to determine their eligibility and potential recovery.
Effect on the World
The impact of this class action lawsuit on the world could be significant, as it highlights the importance of transparency and accuracy in financial reporting. The lawsuit could lead to increased scrutiny of ModivCare’s business practices and could serve as a reminder to all publicly traded companies to ensure that they are providing accurate and complete information to investors. Additionally, the lawsuit could potentially negatively impact investor confidence in the healthcare sector and the NASDAQ stock exchange.
Conclusion
In conclusion, the class action lawsuit filed against ModivCare, Inc. and certain of its officers is a reminder of the importance of transparency and accuracy in financial reporting. The lawsuit, which alleges securities law violations during the Class Period, could potentially result in financial recovery for individual investors. The impact on the world could be significant, as it highlights the importance of truthful and complete disclosures to investors. The outcome of this lawsuit will be closely watched by investors, regulators, and the healthcare industry as a whole.
Bronstein, Gewirtz & Grossman, LLC is a leading national securities fraud law firm with a reputation for providing the highest quality legal representation to individuals and institutions. The firm has recovered billions of dollars for its clients and is committed to ensuring that the securities markets are a fair and level playing field for all investors. If you purchased ModivCare securities during the Class Period and wish to discuss your legal rights, please contact the firm.
