Hagens Berman said the suit covers Aug. 9, 2024 to Mar. 25, 2026 and alleges undisclosed related-party dealings, channel stuffing, weak internal controls and misleading statements about ADMA's finances and operations.
A securities fraud class action has been filed against ADMA Biologics, Inc. in a case Hagens Berman said covers investors from Aug. 9, 2024 through Mar. 25, 2026, with an Aug. 10, 2026 deadline for lead plaintiff motions. The complaint alleges ADMA used an undisclosed related-party transaction, channel stuffing (pushing extra product to distributors to book sales), and inadequate internal controls to misstate its financial condition, revenue recognition, inventory distribution and business practices. Hagens Berman said the alleged scheme began to unravel after a March 24, 2026 Culper Research short-seller report cited channel stuffing, rebates and distributor Genesis BioPharma, followed on March 26 by ADMA saying it was "taking appropriate steps to review the assertions" and a Cantor Fitzgerald downgrade. The release says ADMA shares fell a combined 31.6% over March 24 and March 25, dropping 16.6% to $11.33 and then 15.0% to $9.63, before sliding another 13.9%, or $1.34, to close at $8.29 on March 26. Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the lawsuit's claims, said the firm is examining whether investors were misled, while also inviting potential whistleblowers to consider the SEC Whistleblower program (U.S. securities regulator reward program), which the release says can pay up to 30% of any successful recovery made by the SEC.