Multiple law firms have launched investigations into ADMA Biologics, Inc. (NASDAQ:ADMA) after a short-seller report alleged securities fraud, causing the company’s stock to plummet 29% over two days.
The investigations follow a March 24 report by Culper Research that accused ADMA of engaging in a “channel stuffing” scheme to mask deteriorating demand for its flagship product. The report alleged that “starting in 2025, ADMA induced the distributor to stock excess ASCENIV by offering rebates and extended payment terms in order to meet order expectations.”
Following the report, shares of ADMA Biologics fell from a closing price of $13.59 on March 23 to $9.63 by the end of trading on March 25. Culper’s report claimed that without the alleged scheme, ADMA’s revenue would have declined by three percent in 2025, in stark contrast to the 20 percent growth the company reported.
The biopharmaceutical company has forcefully denied the allegations, stating the short-seller report “appears premised on speculative assertions derived from unidentified and unreliable sources and contains numerous misleading, false and inaccurate statements.” Law firms including Bleichmar Fonti & Auld LLP and Kirby McInerney LLP are now investigating whether the company violated federal securities laws.
In a press release dated March 27, ADMA Biologics provided a detailed rebuttal to the short-seller's claims. The company asserted that demand and utilization for its primary immune deficiency treatment, ASCENIV, have grown steadily and are at a record high.
ADMA also stated that the inventory levels maintained by its distribution partners are in line with industry standards, reflecting the long and complex production cycle required for its specialty biologic products. The company said it is committed to transparently reporting its financial results in accordance with U.S. GAAP standards.
The investigations by shareholder rights law firms are ongoing and no lawsuit has been filed at this stage. The probes seek to determine if ADMA Biologics and its senior management engaged in unlawful business practices or made materially false and misleading statements to investors.
The sharp stock decline puts the stock at its lowest level since early 2026. Investors will be watching for any formal filing of a class-action lawsuit or further responses from the company as the investigations proceed.
This article is for informational purposes only and does not constitute investment advice.
