Law firm Howard G. Smith has recently alerted shareholders of ADMA Biologics that the company is facing a securities fraud class action lawsuit. Investors who purchased the company's shares and suffered losses during a specified period are encouraged to actively seek advice regarding their legal rights.
According to announcements from multiple law firms, this class action has been formally filed in the U.S. District Court for the District of New Jersey. The lawsuit represents all investors who purchased or otherwise acquired securities of ADMA Biologics between August 9, 2024, and March 25, 2026. The deadline for investors to apply to become a lead plaintiff is August 10, 2026.
Basis and Allegations of the Lawsuit
This legal action stems from a research report published by short-seller Culper Research on March 24, 2026. The report accuses ADMA Biologics of issues including "channel stuffing, undisclosed related-party distributors, and a true 2025 growth rate of -3% rather than the reported +20%." The report states that two executives from a major distributor of ADMA confirmed that starting in 2025, ADMA induced the distributor to stockpile excessive amounts of its ASCENIV product to meet sales expectations by offering rebates and extended payment terms. The distributor received products it did not need without immediate payment, while ADMA recorded these shipments as revenue, thereby reporting growth that did not actually exist.
Following this news, ADMA's stock price plummeted for two consecutive trading days. On March 24, the share price fell by $2.26, a decline of 16.6%, closing at $11.33. The next day, it dropped another $1.70, or 15%, to close at $9.63. The cumulative two-day loss reached 29.1%, resulting in significant losses for investors.
Legal Grounds and Investor Rights
The lawsuit alleges that throughout the class period, the defendants made materially false and misleading statements and failed to disclose the following adverse facts: ADMA engaged in undisclosed related-party transactions; it used channel stuffing to create a false impression of revenue growth; and the company lacked adequate internal controls. Consequently, the defendants' positive statements about the company's business, operations, and prospects were materially misleading or lacked a reasonable basis at the relevant times.
Recently, several law firms have issued notices reminding affected investors to pay attention to this case. Howard G. Smith encourages shareholders to contact the firm via email, phone, or its website to discuss their legal rights and participate in the ongoing securities fraud litigation.
Concurrently, ADMA's fundamentals are also under pressure. The company's Q1 2026 financial report shows total revenue decreased by 0.3% year-over-year, with revenue from its core product Bivigam plunging by 54%. Management subsequently lowered its full-year guidance, now expecting 2026 revenue in the range of $530 million to $560 million, significantly below the previous expectation of over $635 million.
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