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As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) ADMA Biologics engaged in an undisclosed related party transaction; (2) ADMA Biologics used channel stuffing to create an appearance of revenue; (3) ADMA Biologics lacked adequate internal controls; and (4) as a result, defendants' statements about ADMA Biologics' business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On March 24, 2026, Culper Research, an investigative research firm, published a report titled "ADMA Biologics Inc (ADMA): Channel Stuffing, an Undisclosed Related Party Distributor, and –3% Real Growth in 2025 vs. +20% Reported." The report revealed, among other things, that in 2025 ADMA Biologics induced one of its distributors to "stock excess ASCENIV by offering rebates and extended payment terms in order to meet order expectations." This allegedly allowed ADMA Biologics to book revenue and "report[] growth that was never there." According to Culper Research, had ADMA Biologics not engaged in this alleged channel stuffing scheme, it would have experienced revenue declines of 3% in 2025 instead of the reported 20% growth.
This news caused the price of ADMA Biologics stock to decline $3.96 per share, or 29%, over the course of two trading days, from $13.59 per share on March 23, 2026, to $9.63 per share on March 25, 2026.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding ADMA Biologics' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the ADMA Biologics class action, go to www.faruqilaw.com/ADMA or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the ADMA Biologics Securities Class Action Lawsuit:
What is the ADMA Biologics securities fraud lawsuit about?
The lawsuit alleges that ADMA Biologics and certain executives made materially false and misleading statements and failed to disclose key information about the Company's business and financial practices. Specifically, the complaint claims that ADMA engaged in an undisclosed related-party transaction, used channel stuffing to create the appearance of stronger revenue growth, and lacked adequate internal controls. Investors allege that these issues rendered the Company's public statements about its operations, financial performance, and prospects misleading.
Who may be eligible to participate in the lawsuit?
Investors who purchased or otherwise acquired ADMA Biologics (NASDAQ: ADMA) securities between August 9, 2024 and March 25, 2026, inclusive (the "Class Period"), may be eligible to participate in the securities class action. Eligibility generally depends on when shares were purchased and whether investors suffered losses related to the alleged misconduct. Participation is not limited to investors seeking appointment as lead plaintiff.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff is the investor appointed by the court to represent the interests of all class members throughout the litigation. The lead plaintiff typically works with counsel, helps oversee the case, and may participate in major litigation decisions. To seek appointment as lead plaintiff, an eligible investor must file a motion with the court by August 10, 2026. Investors do not need to serve as lead plaintiff to remain eligible for any potential recovery.
What should investors do if they purchased ADMA Biologics stock during the Class Period?
Investors who purchased ADMA Biologics securities during the Class Period and suffered losses should review their transaction records, preserve relevant documentation, and evaluate their legal options. Investors may wish to consult with Faruqi & Faruqi regarding their rights, potential participation in the class action, and whether seeking lead plaintiff status is appropriate before the August 10, 2026 deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased ADMA Biologics securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
SOURCE Faruqi & Faruqi, LLP
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