Securities Fraud Investigation Into ModivCare, Inc. (MODV) Announced – Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz

By: The Law Offices of Frank R. Cruz via Business Wire

January 30, 2025 at 15:27 PM EST

The Law Offices of Frank R. Cruz announces an investigation of ModivCare, Inc. (“ModivCare” or the “Company”) (NASDAQ: MODV) on behalf of investors concerning the Company’s possible violations of federal securities laws.

IF YOU ARE AN INVESTOR WHO LOST MONEY ON MODIVCARE, INC. (MODV), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.

What Is The Investigation About?

On May 4, 2023, ModivCare released its first quarter 2023 financial results, revealing that it had experienced a reduction of cash flow from operations. On this news, ModivCare’s stock price fell $11.30, or 16.3%, to close at $58.00 per share on May 4, 2023, thereby injuring investors.

Then, on August 3, 2023, after market hours, ModivCare released its second quarter 2023 financial report, disclosing that the Company had experienced the expansion of a “large payable balance” that had impacted its cash flow from operations during the quarter. On this news, ModivCare’s stock price fell $2.86, or 7.5%, to close at $35.38 per share on August 4, 2023.

Then, on February 23, 2024, ModivCare released its fourth quarter 2023 financial results, revealing that the Company suffered negative cash flow during the quarter, and that the trend was expected to continue for the first half of fiscal year 2024. On this news, ModivCare’s stock price fell $17.25, or 39.3%, to close at $26.62 per share on February 23, 2024.

Then, on September 12, 2024, ModivCare disclosed that it would “undertak[e] actions to seek additional capital, including filing a shelf registration statement” with the SEC to improve its liquidity. On this news, ModivCare’s stock price fell $18.43, or 59.1%, to close at $12.76 per share on September 12, 2024.

Then, on September 16, 2024, ModivCare provided a financial update, revising 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, or 9.9%, to close at $12.72 per share on September 16, 2024, thereby injuring investors further.

Contact Us To Participate or Learn More:

If you purchased ModivCare securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

The Law Offices of Frank R. Cruz,

2121 Avenue of the Stars, Suite 800,

Century City, California 90067

Call us at: 310-914-5007

Email us at: info@frankcruzlaw.com

Visit our website at: www.frankcruzlaw.com.

Follow us for updates on Twitter at twitter.com/FRC_LAW.

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130827778/en/

Contacts

The Law Offices of Frank R. Cruz, Los Angeles

Frank R. Cruz

310-914-5007

fcruz@frankcruzlaw.com

www.frankcruzlaw.com

About Us

Additional Information

Website & Technical Help

Securities Fraud Investigation Into ModivCare, Inc. (MODV) Announced – Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz

Contacts

More News