Important Information for ModivCare Inc. (MODV) Investors: Rosen Law Firm Announces Class Action Lawsuit and Lead Plaintiff Deadline
On February 22, 2025, Rosen Law Firm, a global investor rights law firm, issued a press release reminding purchasers of ModivCare Inc. (MODV) securities between November 3, 2022, and September 15, 2024 (the “Class Period”), of the important March 31, 2025, lead plaintiff deadline in a securities class action lawsuit. The lawsuit alleges that ModivCare and certain of its officers and directors made false and misleading statements and failed to disclose material information to the investing public.
Background on ModivCare Inc. (MODV)
ModivCare Inc. is a technology-enabled healthcare services company that provides post-acute care services to patients in their homes. The company offers a range of services, including infusion therapy, enteral nutrition, and respiratory therapy. ModivCare’s business model is based on partnerships with healthcare providers and payers, allowing it to provide care to patients in their homes rather than in hospitals or other institutional settings.
Allegations in the Class Action Lawsuit
The class action lawsuit alleges that ModivCare and certain of its officers and directors made false and misleading statements and failed to disclose material information regarding the company’s business, operations, and financial condition. Specifically, the complaint alleges that the defendants made false and misleading statements and failed to disclose:
- The company’s financial performance was not improving as represented, and it was experiencing significant revenue declines;
- The company’s partnership strategy was not generating the expected revenue growth;
- The company was experiencing significant operating losses and negative cash flows;
- The company was facing increased competition, which was negatively impacting its business;
Impact on Individual Investors
If you purchased ModivCare securities during the Class Period and suffered a loss, you may be eligible to join the class action lawsuit as a lead plaintiff. The lead plaintiff is a representative party acting on behalf of other class members in the lawsuit. The lead plaintiff will be in charge of making important decisions for the class, such as whether to accept a settlement or go to trial. If you wish to serve as the lead plaintiff, you must meet certain eligibility requirements and file a motion with the court before the March 31, 2025, deadline.
Impact on the World
The outcome of the ModivCare class action lawsuit could have significant implications for the healthcare industry as a whole. If the allegations in the lawsuit are proven true, it could lead to increased scrutiny of other healthcare companies and their financial reporting practices. It could also lead to increased regulation of the healthcare industry, particularly in the area of partnerships and revenue recognition. Additionally, it could lead to increased investor skepticism towards healthcare companies and their financial statements.
Conclusion
If you purchased ModivCare securities during the Class Period and suffered a loss, you may be eligible to join the class action lawsuit as a lead plaintiff. The March 31, 2025, deadline for filing a motion to serve as the lead plaintiff is fast approaching. It is important for investors to take action if they believe they may be eligible to participate in the lawsuit. The outcome of the lawsuit could have significant implications for the healthcare industry and investor confidence in healthcare companies.
For more information on the ModivCare class action lawsuit or to discuss your legal options, contact Rosen Law Firm at 866-767-3653 or via the firm’s website: [email protected].
