SAN DIEGO and WEST HOLLYWOOD, Calif., March 7, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Medbox, Inc. (OTC: MDBX), the maker of medical marijuana vending medicines, breached their fiduciary duties to shareholders.
View the investigation on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/medbox
Questions About Medbox's Financial Reporting Follow Concerns Voiced Over Medbox Founder's History
On February 18, 2014, Citron Research, an admitted short seller of stock, reported on Medbox. In the report, Citron argues that Medbox's financial statements are incorrect. For example, on November 19, 2013, in a filing with OTCMarkets, Medbox reported a profit for the quarter ended September 30, 2013. However, in its January 21, 2014 filing with the U.S. Securities and Exchange Commission covering the same period, Medbox appears to be losing money. On the release of this report, Medbox stock dropped over 17% in mid-day trading.
Citron released a second report on February 24, 2014, analyzing the insider sales of CEO Bruce Bedrick, noting that he sold over 60,000 shares that Medbox Founder Pejman Vincent Mehdizadeh gave to Bedrick as a gift.
The Citron reports follow an article issued by the Southern Investigative Reporting Foundation on September 30, 2013, that claims Mehdizadeh engaged in numerous ethical infractions, including falsely posing as a lawyer, credit card fraud, and tax evasion. The article further details the Foundation's discovery of disclosure issues, related-party transactions, and problems with the company's accounting and its accountants.
In light of this information, Robbins Arroyo LLP is investigating whether Medbox's board of directors has breached its fiduciary duties to shareholders in relation to the company's financial reporting and whether it has deceived shareholders and the public.
Medbox Shareholders Have Legal Options
Robbins Arroyo LLP highlights that Medbox shareholders have the option to pursue a shareholder litigation demand or shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP