Breaking News: ModivCare Investors Encouraged to Join Securities Fraud Class Action Lawsuit
Los Angeles, CA – March 12, 2025 – The Law Offices of Frank R. Cruz, a leading securities litigation firm, is announcing that investors who have incurred losses due to ModivCare, Inc. (MODV) securities between March 1, 2023, and January 31, 2025, may be able to join a securities fraud class action lawsuit against the Company. The complaint alleges that ModivCare made false and misleading statements and failed to disclose material information concerning its business, operations, and financial condition.
Background on ModivCare
ModivCare is a healthcare services company that provides post-acute care services to patients in the United States. The Company offers a range of services, including home health, hospice, and infusion therapy. ModivCare’s business model is built on partnerships with hospitals, health systems, and other healthcare providers to offer care services to their patients in their homes or other care settings.
Alleged Misstatements and Omissions
The lawsuit alleges that ModivCare made false and misleading statements and failed to disclose material information concerning its business, operations, and financial condition. Specifically, the complaint alleges that the Company::
- Overstated its revenue growth and financial performance by failing to disclose significant declines in its home health business
- Failed to disclose that its infusion therapy business was experiencing significant declines due to increased competition and reimbursement pressures
- Failed to disclose that it was experiencing significant operating losses and negative cash flows
Impact on Investors
The alleged misstatements and omissions caused the price of ModivCare’s stock to artificially inflate, resulting in significant losses for investors who purchased the stock during the class period. The lawsuit seeks to recover damages on behalf of these investors.
Impact on the World
The fallout from this securities fraud lawsuit could have far-reaching implications for the healthcare industry. ModivCare’s business model, which relies on partnerships with hospitals and healthcare providers, is becoming increasingly common in the healthcare sector. If the allegations in the lawsuit are proven true, it could send a warning signal to investors about the risks associated with investing in healthcare services companies that rely on partnerships with healthcare providers.
Conclusion
The securities fraud class action lawsuit against ModivCare is a significant development for investors who purchased the Company’s stock between March 1, 2023, and January 31, 2025. If the allegations in the lawsuit are proven true, these investors may be able to recover damages. The lawsuit also serves as a reminder of the importance of transparency and accuracy in financial reporting, particularly in the healthcare sector. As the healthcare industry continues to evolve, investors must be vigilant about the risks associated with investing in healthcare services companies, especially those that rely on partnerships with healthcare providers.
If you have lost money investing in ModivCare and would like to discuss your legal options, please contact The Law Offices of Frank R. Cruz. Our experienced securities litigation team can help you determine whether you may be eligible to join the class action lawsuit.
The Law Offices of Frank R. Cruz is a leading firm in securities class action lawsuits and has recovered billions of dollars for investors. For more information, please visit our website or contact us at 310-914-5007 or [email protected].
