Key Takeaways:
ADMA Biologics investors face an Aug. 10 lead plaintiff deadline in a securities suit for shares bought from Aug. 9, 2024 to March 25, 2026.
The case, Mazzarino v. ADMA Biologics, Inc., et al., No. 26-cv-04793, is pending in the U.S. District Court for the District of New Jersey, Robbins Geller Rudman & Dowd LLP said in a notice. The firm is among several, including Hagens Berman and Kahn Swick & Foti, soliciting investors to seek appointment as lead plaintiff by Monday.
The complaint alleges ADMA engaged in an undisclosed related party transaction, used channel stuffing to create an appearance of revenue, and lacked adequate internal controls, according to court filings. The suit claims the company's statements about its business, operations, and prospects were materially false and misleading and lacked a reasonable basis.
The allegations trace to a March 24 short-seller report from Culper Research that revealed channel stuffing, rebates, and an undisclosed related-party distributor, Genesis BioPharma. ADMA shares fell 16.6 percent to $11.33 that day and another 15 percent to $9.63 on March 25, a combined 31.6 percent decline. A March 26 company response and a Cantor Fitzgerald downgrade pushed the stock down 13.9 percent to $8.29.
The lawsuit could impose significant legal liabilities on ADMA, including potential settlements and legal expenses that would pressure the company's financial position. Investors who bought during the class period and suffered losses should watch the Aug. 10 deadline, though appointment as lead plaintiff is not required to share in any recovery.
This article is for informational purposes only and does not constitute investment advice.
