A securities fraud class action was filed against ADMA Biologics Inc. alleging the company inflated revenue through channel stuffing and an undisclosed related-party distributor. The lawsuit covers investors who bought shares between August 2024 and March 2026, with a lead plaintiff deadline of Aug. 10.
ADMA Biologics Inc. was hit with a securities fraud class action alleging it inflated revenue through channel stuffing, causing a 29% stock decline.
"ADMA's reported growth is a fiction driven more than entirely by a de facto channel stuffing scheme," Culper Research said in a March 24 report that triggered the selloff.
The class action covers investors who bought ADMA securities between Aug. 9, 2024 and March 25, 2026. The lawsuit alleges the company made false statements about its revenue growth and lacked adequate internal controls. ADMA reported 20% revenue growth in 2025, but Culper estimated real growth was negative 3%.
The stock fell $3.96 over two trading sessions following the report, closing at $9.63 on March 25. Cantor Fitzgerald later downgraded the stock, citing disappointment with ADMA's response to the allegations.
The lawsuit, filed by Kessler Topaz Meltzer & Check LLP, alleges ADMA induced a distributor to stock excess product by offering rebates and extended payment terms, allowing the company to book revenue that did not reflect genuine demand. Two high-level employees at one of ADMA's two largest distributors confirmed the scheme, according to the Culper report. Multiple law firms including Robbins LLP, Glancy Prongay Wolke & Rotter LLP, and Pomerantz LLP have also announced investigations or filed related actions.
ADMA, a commercial-stage biopharmaceutical company focused on plasma-derived therapies for immunodeficient patients, generated most of its revenue from its ASCENIV product. The Culper report alleged that starting in 2025, ADMA used rebates and extended payment terms to induce a distributor to stock excess inventory.
ADMA's stock closed at $8.29 on March 26 after the Cantor Fitzgerald downgrade, down from $13.59 before the Culper report. The stock now trades near its lowest level since the allegations emerged. Investors have until Aug. 10 to seek appointment as lead plaintiff in the class action.
The lawsuit adds legal risk to ADMA's already damaged credibility with investors. The company's response to the allegations and any potential restatement of prior financial results will be key catalysts to watch.
This article is for informational purposes only and does not constitute investment advice.
