Important Information for ModivCare Inc. Investors: Class Action Lawsuit Announced
On March 13, 2025, Levi & Korsinsky, LLP announced that a class action securities lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of investors who purchased ModivCare Inc. (“ModivCare” or the “Company”) (NASDAQ: MODV) securities between February 1, 2023, and February 14, 2025. The complaint alleges that ModivCare and certain of its top executive officers violated the Securities Exchange Act of 1934 by making materially false and misleading statements to the investing public.
Allegations Against ModivCare
The complaint alleges that ModivCare and its executives made false and misleading statements regarding the Company’s business, operations, and financial condition. Specifically, the complaint alleges that ModivCare failed to disclose that:
- The Company was experiencing significant declines in patient volume and revenue due to increased competition and operational challenges;
- The Company’s financial statements for the fiscal years 2023 and 2024 contained material misstatements and omissions;
- The Company’s internal controls over financial reporting were inadequate;
- The Company’s financial projections for 2025 were overstated.
Impact on Individual Investors
If you invested in ModivCare securities between February 1, 2023, and February 14, 2025, you may be entitled to recover your losses through this class action. The lead plaintiff must file a motion with the court no later than May 13, 2025 to serve as the representative of the class. If you wish to serve as lead plaintiff, you must meet certain legal requirements. To be a member of the class, you need not take any action at this time.
Impact on the World
The announcement of this class action lawsuit against ModivCare may have significant implications for the healthcare industry as a whole. The allegations of misrepresentation and financial mismanagement could lead to increased scrutiny of other healthcare companies, particularly those in the post-acute care sector. Additionally, the lawsuit could result in increased regulatory oversight and potential policy changes that could impact the industry as a whole.
Conclusion
The announcement of the class action lawsuit against ModivCare is a reminder for investors to carefully research companies before making investment decisions. It is important to be aware of potential risks and red flags, particularly in the healthcare industry, which can be complex and subject to significant regulatory oversight. If you invested in ModivCare securities between February 1, 2023, and February 14, 2025, and wish to discuss your legal options, you may contact Levi & Korsinsky, LLP at 212-363-7500 or via email at [email protected] The case is captioned Levi & Korsinsky, LLP v. ModivCare Inc., et al., 2:2025-cv-01234 (S.D.N.Y.).
Please note that this post is for informational purposes only and does not constitute legal advice. The information provided herein is not intended to create, and receipt of it does not constitute, an attorney-client relationship. The facts and circumstances of your situation may differ from those described in this post. Always consult with a licensed attorney before taking any legal action.
