ModivCare Inc. management hid deteriorating free cash flows by touting certain contracts in its non-emergency medical transportation business as mitigating risks, a shareholder lawsuit said.
Share prices plummeted more than 59% on Sept. 12, the day the health care company said in a Securities and Exchange Commission filing that it was taking steps to improve its liquidity partly due to outstanding contract receivables, said the complaint filed Monday in the US District Court for the District of Colorado.
It was the stock’s biggest one-day drop since October 2008, according to data compiled by Bloomberg.
Top corporate brass concealed that certain ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.