NEW YORK, March 30, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against ModivCare, Inc. (“ModivCare” or the “Company”) (NASDAQ: MODV). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether ModivCare and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until March 31, 2025, to ask the Court to appoint you as Lead Plaintiff for the class if you are an investor who purchased or otherwise acquired ModivCare securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On May 4, 2023, ModivCare issued a press release reporting its financial results for the first quarter of 2023. During an associated earnings call, the Company’s Chief Financial Officer Kenneth Shepard disclosed that ModivCare experienced a reduction of cash flow from operations during the quarter.
On this news, ModivCare’s stock price fell $11.30 per share, or 16.31%, to close at $58.00 per share on May 4, 2023.
On August 3, 2023, ModivCare issued a press release reporting its financial results for the second quarter of 2023. During an associated earnings call, the Company’s Chief Executive Officer (“CEO”) L. Heath Sampson informed investors that ModivCare experienced the expansion of a “large payable balance” that impacted the Company’s cash flow from operations during the quarter.
On this news, ModivCare’s stock price fell $2.86 per share, or 7.48%, to close at $35.38 per share on August 4, 2023.
On February 23, 2024, ModivCare issued a press release reporting its financial results for the four quarter of 2023. During an associated earnings call, CEO Sampson informed investors that the Company experienced negative cash flow during the quarter and that he expected the trend to continue for the first half of fiscal year 2024.
On this news, ModivCare’s stock price fell $17.25 per share, or 39.32%, to close at $26.62 per share on February 23, 2024.
On September 12, 2024, ModivCare issued a press release announcing, among other things, that it would “undertak[e] actions to seek additional capital, including filing a shelf registration statement with the U.S. Securities and Exchange Commission to improve its liquidity.
On this news, ModivCare’s stock price fell $18.43 per share, or 59.09%, to close at $12.76 per share on September 12, 2024.
Finally, on September 16, 2024, ModivCare issued a press release in which the Company revised its 2024 Adjusted EBITDA guidance range from $185–$195 million to $170–$180 million, “primarily due to NEMT segment pricing accommodations made to strategically retain and expand key customer relationships.”
On this news, ModivCare’s stock price fell $1.40 per share, or 9.92%, to close at $12.72 per share on September 16, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
