Scott+Scott Attorneys at Law LLP has filed a securities class action against ModivCare Inc. (MODV) on behalf of all persons other than Defendants who purchased or otherwise acquired ModivCare securities between November 3, 2022, and September 15, 2024. This case has been filed in the USDC – CO.
ModivCare is a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions for public and private payors and their members. As part of its business model, ModivCare enters into contracts with a network of independent transportation providers.
The Class Action alleges that, during the Class Period, Defendants made misleading statements and omissions regarding the Company’s business, financial condition, and prospects. Specifically, Defendants misled the market regarding the ability of its contracts to stabilize cash flow.
As the truth about ModivCare’s business reached the market, the price of ModivCare’s stock suffered significant declines, harming investors. For example, on September 16, 2024, before market hours, ModivCare filed a press release on a Form 8-K with the Securities and Exchange Commission, titled “Modivcare Provides Financial Update.” Therein, 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, the Company’s stock price fell $1.40 or nearly 10%, from $14.12 per share on September 15, 2024, to close at $12.72 per share on September 16, 2024, on unusually high trading volume.