New York, New York–(Newsfile Corp. – January 20, 2025) – Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a shareholder and consumer rights litigation firm, is investigating whether ModivCare Inc (“ModivCare” or the “Company”) (NASDAQ: MODV) or certain of its officers and directors issued misleading and false statements and/or failed to disclose information material to investors in violation of federal securities laws.
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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. Certain contracts require ModivCare to pay costs upfront and receive refunds from providers at a later date. The Company assured investors these contracts stabilize its cashflow.
On September 12, 2024, before market hours, ModivCare filed a press release on a Form 8-K. Therein, the Company announced that it would seek additional capital, including the subsequent filing of a shelf registration for $200M mixed offering of common stock, preferred stock debt, and warrants, due to constrained cashflow. On this news, the Company’s stock price fell ~59% from $31.19 to close at $12.76, on heavy trading volume.
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If you have purchased ModivCare securities, and have suffered a loss, realized or unrealized, and you wish to discuss this investigation, please contact attorney Nicholas Bruno at (888) 398-9312 or at nbruno@scott-scott.com.
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About Scott+Scott
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
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