The litigation, spearheaded by Hagens Berman, alleges that the biopharmaceutical firm misled shareholders regarding its financial health and internal controls. Central to the claims is the accusation that ADMA engaged in "channel stuffing" to fabricate revenue figures and failed to disclose a related-party transaction involving distributor Genesis BioPharma. These practices allegedly concealed the company’s true operational reality from the market.

The collapse in shareholder value followed a March 2026 report by Culper Research, which exposed the alleged distribution irregularities. The company’s stock price plummeted 31.6% over two trading days following the initial disclosure. Further pressure mounted on March 26, when a Cantor Fitzgerald downgrade and the company’s own acknowledgment that it was reviewing the assertions triggered an additional 13.9% decline in share price.

Reed Kathrein, the partner leading the investigation, stated that the firm is scrutinizing whether ADMA knowingly concealed the nature of its distribution channels. Investors with significant losses are encouraged to contact the firm, while individuals with non-public information may qualify for the SEC Whistleblower program, which offers potential financial rewards for original information leading to successful recovery.