ADMA Biologics faces securities fraud lawsuit after 16.6% stock drop

ADMA Biologics Inc. faces a securities fraud class action alleging it inflated 2025 revenue by 20 percent through a channel stuffing scheme, causing a 16.6 percent stock drop.

ADMA induced one of its distributors to stock excess ASCENIV, its flagship immune globulin treatment for Primary Humoral Immunodeficiency, by offering rebates and extended payment terms to meet order expectations, according to a March 24 report from Culper Research that triggered the decline. The complaint, filed in the U.S. District Court for the District of New Jersey, also alleges the company engaged in an undisclosed related party transaction and lacked adequate internal controls. The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased ADMA securities during the class period.

The stock fell $2.26, or 16.6 percent, to $11.33 on March 24 after Culper published its findings. Shares dropped another 15 percent the next day to $9.63. Cantor Fitzgerald downgraded the stock on March 26, sending shares down a further 13.9 percent to $8.29 by March 29. In total, ADMA lost more than 39 percent of its market value over the four-day period, erasing hundreds of millions of dollars in market capitalization. ADMA had reported 20 percent growth for 2025, but Culper alleged real revenue declined 3 percent, meaning the reported growth was entirely manufactured through the alleged channel stuffing scheme.

ADMA is an end-to-end commercial biopharmaceutical company focused on manufacturing and developing specialty biologics. Its flagship product ASCENIV is a liquid immune globulin solution used to treat Primary Humoral Immunodeficiency in adults and adolescents. The company also markets BIVIGAM, another immune globulin product, and RI-002, a plasma-derived therapy. The immune globulin market is a multi-billion dollar segment of the plasma-derived therapeutics industry.

The class period covers investors who purchased ADMA securities between Aug. 9, 2024, and March 25, 2026, encompassing the period when the alleged misconduct occurred. Multiple law firms, including Rosen Law Firm and Bleichmar Fonti & Auld LLP, have filed or announced the class action. The Rosen Law Firm, which said it was the first to file, noted that it has recovered billions of dollars for investors in previous securities class actions. Investors have until Aug. 10, 2026, to seek lead plaintiff status in the case, captioned Mazzarino v. ADMA Biologics, Inc., et al., No. 26-cv-6918.

The lawsuit threatens to expose deeper governance issues at ADMA and could result in significant financial penalties. Investors will watch for the court's appointment of lead counsel and any subsequent discovery filings.

This article is for informational purposes only and does not constitute investment advice.