The lawsuit, filed by Hagens Berman, alleges that ADMA Biologics artificially boosted its share price by failing to disclose critical business practices, including the use of channel stuffing to manufacture the appearance of consistent revenue. According to the complaint, these misrepresentations left investors vulnerable when the true state of the company’s internal controls and financial health surfaced. The allegations center on the period between August 9, 2024, and March 25, 2026.

Market confidence collapsed following a March 2026 report from Culper Research, which exposed the use of an undisclosed distributor, Genesis BioPharma, alongside improper rebate practices. The ensuing fallout triggered a 31.6% decline in stock value over two days. A subsequent rating downgrade from Cantor Fitzgerald, coupled with the company’s internal review of these claims, drove shares down an additional 13.9%. Lead counsel Reed Kathrein is now calling for investors who sustained substantial losses to come forward before the August 10, 2026 deadline.