The legal action centers on the period between August 9, 2024, and March 25, 2026. Hagens Berman, the firm leading the case, alleges that ADMA Biologics engaged in "channel stuffing" to artificially boost revenue figures while failing to maintain necessary internal financial controls. Plaintiffs claim the company obscured its relationship with Genesis BioPharma, a distributor that served as an undisclosed related party.

Market volatility intensified on March 24, 2026, when a report from Culper Research detailed these practices. The revelation triggered a two-day sell-off that saw the stock price drop by 31.6%. Confidence further deteriorated on March 26 when ADMA acknowledged it was reviewing the assertions, contributing to an additional 13.9% decline and a subsequent rating downgrade from Cantor Fitzgerald. Investors seeking to serve as lead plaintiffs must submit their information to the court by August 10, 2026.

Reed Kathrein, the partner overseeing the investigation, stated that the firm is scrutinizing whether leadership knowingly concealed the reality of its distribution channels. The lawsuit aims to recover damages for shareholders who suffered losses during the specified timeframe. Individuals with non-public information regarding the company’s practices are encouraged to contact legal counsel to discuss potential whistleblower protections and rewards.