Biopharmaceutical firm ADMA Biologics Inc (NASDAQ: ADMA) is confronting a securities fraud class action lawsuit. This follows a report issued by short-seller Culper Research on March 24, 2026, which accused the company of inflating revenue through channel stuffing and undisclosed related-party transactions.
The lawsuit has been filed in the U.S. District Court for New Jersey. The complaint alleges that ADMA and certain of its executives made materially false and misleading statements between August 9, 2024, and March 25, 2026. It claims they failed to disclose key facts to investors, including the company's engagement in undisclosed related-party transactions, the use of channel stuffing to create a false appearance of revenue growth, and a lack of adequate internal controls.
Culper's report stated that two senior employees at one of ADMA's two largest distributors confirmed the company had, since 2025, induced the distributor to stockpile excess inventory of its flagship product, ASCENIV, by offering rebates and extended payment terms. The report estimates that without this practice, ADMA's actual revenue for 2025 would have declined by 3%, rather than showing the reported 20% growth.
Following the allegations, ADMA's stock price plummeted 29% over two trading sessions, falling from $13.59 to $9.63 and erasing approximately $1.2 billion in market value. Subsequently, Cantor Fitzgerald downgraded the stock, putting further pressure on the share price. The company also lowered its full-year financial guidance in May, further undermining investor confidence.
Under the Private Securities Litigation Reform Act, investors who purchased ADMA shares during the class period and suffered losses may apply to the court to serve as lead plaintiff by August 10, 2026. Several law firms have announced investigations and are seeking investors to join the action.
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