Key Takeaways:
Rosen Law Firm and Bleichmar Fonti & Auld LLP have announced investigations into ADMA Biologics following a 29% drop in its share price on allegations of issuing misleading business information.
The investigations follow a March 24 report from short-seller Culper Research alleging the biopharmaceutical company engaged in a "channel stuffing" scheme to inflate its revenue growth, according to statements from the law firms.
The report claimed that without the alleged scheme, ADMA's 2025 revenue would have declined 3% instead of the 20% growth it reported. The news sent ADMA shares plunging from $13.59 on March 23 to $9.63 by March 25, a 29% decline over two trading days.
The probes create significant legal and financial risk for ADMA, potentially leading to a class-action lawsuit where the company would have to compensate shareholders for losses. Investor confidence has been shaken, with the stock now trading at one-month lows.
The core of the allegation centers on ADMA's flagship product, ASCENIV. Culper Research claims the company induced a distributor to buy excess inventory by offering special rebates and extended payment terms, allowing ADMA to improperly book revenue and "report growth that was never there."
Both Rosen Law Firm and Bleichmar Fonti & Auld LLP are now soliciting investors who purchased ADMA securities to join a potential class action. These firms specialize in securities litigation and have a history of securing large settlements for investors in similar cases.
The allegations challenge the integrity of ADMA's reported financial performance and management credibility. Investors will now watch for the formal filing of a class-action lawsuit and the company's official response to the short-seller's claims.
This article is for informational purposes only and does not constitute investment advice.
