The lawsuit claims that between August 9, 2024, and March 25, 2026, ADMA Biologics artificially inflated its stock price by concealing related-party transactions and utilizing channel stuffing to manufacture the appearance of revenue growth. According to the complaint, these practices occurred alongside a lack of adequate internal controls, misleading investors about the company’s underlying business health.

The market reacted violently to these revelations in March 2026. Following a report from Culper Research that detailed undisclosed ties to distributor Genesis BioPharma, ADMA shares plummeted 31.6% over two trading days. A subsequent press release from the company and a downgrade from Cantor Fitzgerald pushed the stock down another 13.9%, leaving investors with significant losses. Hagens Berman partner Reed Kathrein is currently leading the investigation into whether the company’s public statements lacked a reasonable basis, urging those with substantial losses or non-public information to contact the firm before the court-imposed deadline.