Health-care services company ModivCare Inc. was hit with a proposed class action alleging it failed to disclose details to investors about deteriorating cash flows, artificially inflating its stock price.
ModivCare and its chief executives violated federal securities law by misleading the market to believe certain contracts used in the company’s non-emergency medical transportation segment mitigated risks to its so-called free cash flow, according to a complaint filed Wednesday in the US District Court for the District of Colorado. But the company’s free cash flow deteriorated, the complaint said.
A measure of a company’s ...
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