(P1) Rosen Law Firm announced it is investigating ADMA Biologics, Inc. (NASDAQ: ADMA) for potential securities fraud, a move that follows a steep decline in the company's stock price.
(P2) The investigation stems from a March 24 report by short-seller Culper Research, which alleged the biopharmaceutical company engaged in a "channel stuffing" scheme to mask deteriorating demand for its flagship product.
(P3) The report claimed that instead of the 20% revenue growth ADMA reported for 2025, the company’s real growth was negative 3%. Following the news, ADMA Biologics' stock price fell $3.96 per share, or 29%, from $13.59 on March 23 to $9.63 on March 25.
(P4) Rosen Law Firm is now preparing a class-action lawsuit to recover losses for investors. The firm stated that shareholders may be entitled to compensation without out-of-pocket fees through a contingency fee arrangement.
Another securities law firm, Bleichmar Fonti & Auld LLP, also announced a parallel investigation into ADMA for potential violations of federal securities laws, indicating a broadening of legal challenges facing the company. The allegations center on ADMA's primary product, ASCENIV, an immune globulin solution. Culper Research claimed that ADMA induced a distributor to stock excess inventory by offering rebates and extended payment terms, allowing it to improperly book revenue.
This legal scrutiny places ADMA Biologics under significant pressure, as a class-action lawsuit could result in substantial financial penalties. The sharp stock decline reflects waning investor confidence, and the company's next earnings report will be critical for addressing the allegations.
This article is for informational purposes only and does not constitute investment advice.
