Important Information for ModivCare Inc. (MODV) Investors: Rosen Law Firm Reminds of Upcoming Deadline
NEW YORK, March 27, 2025. Rosen Law Firm, a global investor rights law firm, alerts purchasers of ModivCare Inc. (NASDAQ: MODV) securities between November 3, 2022, and September 15, 2024 (the “Class Period”), to take note of the March 31, 2025, lead plaintiff deadline. The lawsuit seeks to recover damages for ModivCare investors under the Securities Exchange Act of 1934.
Background on the Case
ModivCare is a healthcare services company specializing in post-acute care and community-based services. The company’s offerings include home health, hospice, and infusion services. In its Form 10-Q filed on November 16, 2022, ModivCare reported strong financial results for the third quarter of 2022, citing a 25% year-over-year increase in revenue and a 36% increase in adjusted EBITDA.
Alleged Misrepresentations
However, on November 22, 2022, an article was published by a short-seller alleging that ModivCare had engaged in fraudulent billing practices, inflating its revenue and profit numbers. The article, titled “ModivCare: The Home Healthcare Unicorn That Isn’t,” claimed that the company had submitted millions of dollars in false claims to Medicare and Medicaid, leading to potential legal and financial consequences.
Class Action Lawsuit
Following the publication of the article, ModivCare’s stock price dropped significantly, leading investors to file a class action lawsuit against the company. The lawsuit alleges that ModivCare and certain of its executives made materially false and misleading statements regarding the company’s business, operations, and financial condition during the Class Period.
Effect 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. As a lead plaintiff, you will act on behalf of all other class members in directing the litigation and making important decisions. In addition, you may be entitled to share in any recovery made by the class.
Effect on the World
The allegations against ModivCare could have far-reaching consequences for the healthcare industry as a whole. If the company is found to have engaged in fraudulent billing practices, it could lead to increased scrutiny of other healthcare companies and potentially result in regulatory action. Additionally, it could deter investors from putting their money into healthcare stocks, potentially impacting the industry’s growth and innovation.
Conclusion
The deadline for lead plaintiff certification in the ModivCare class action lawsuit is fast approaching. If you purchased ModivCare securities during the Class Period and believe you may have been impacted by the alleged misrepresentations, you are encouraged to contact Rosen Law Firm as soon as possible to discuss your potential recovery options. For more information, please visit www.rosenlegal.com or contact Philip F. Hilder, Esq. or Kevin J. Matras, Esq. of Rosen Law Firm at [email protected] or [email protected].
About Rosen Law Firm: Rosen Law Firm represents investors in securities litigation and other complex litigation matters. The firm is dedicated to protecting investors’ rights and recovering damages for aggrieved investors. For more information, please visit www.rosenlegal.com.
- Rosen Law Firm Alerts ModivCare (MODV) Investors of Lead Plaintiff Deadline
- Class Action Lawsuit Filed Against ModivCare for Alleged Misrepresentations
- Potential Impact on Individual Investors and the Healthcare Industry
- Contact Rosen Law Firm for More Information
