NEW YORK, Jan. 27, 2015 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a securities class action has been filed in the United States District Court for the Central District of California on behalf of those who purchased shares of Medbox, Inc. ("Medbox" or the "Company") (OTC:MDBX), during the period between November 20, 2013 and December 29, 2014 inclusive. (the "Class Period").
The complaint alleges that the Company made false and/or misleading statements and/or failed to disclose material information regarding the Company's business, operations, and prospects.
The Complaint alleges that during the Class Period, Defendants issued materially false and misleading statements regarding the Company's financial results for the fiscal year ended December 31, 2013 and each of the interim financial periods ended September 30, 2013, December 31, 2013, March 30, 2014, June 30, 2014 and September 30, 2014. Specifically, Defendants overstated Medbox's revenues by recognizing revenue on customer contracts before it had been earned.
On December 30, 2014, before the opening of trading, Medbox issued a press release disclosing that it would be forced to restate the past five quarters of financial reports and potentially its "financial statements for 2012 and for the first two quarters of 2013 . . . as well." The Company further disclosed that the earnings restatement had triggered a default on its debt covenants that had forced it to seek a forbearance from lenders. The release stated that the "steps [being taken were] part of the continued initiative of [Medbox's] new board of directors and new management team to implement better controls and emphasize transparency."
On this news, shares of Medbox fell $0.81 per share, or approximately 12.67%, to close at $5.58 per share on December 31, 2014.
Plaintiff seeks to recover damages on behalf of all shareholders who purchased shares of Medbox during the Class Period described above.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Coordinator Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email [email protected]. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Medbox you have until March 22, 2015 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Eitan Kimelman 212-697-6484
SOURCE Bronstein, Gewirtz & Grossman, LLC