The litigation, spearheaded by Hagens Berman Sobol Shapiro LLP, centers on claims that ADMA Biologics misled shareholders regarding its financial health and distribution channels. Plaintiffs contend the company engaged in channel stuffing to manufacture the appearance of revenue and failed to disclose related-party transactions with Genesis BioPharma. These practices reportedly came to light following a March 2026 report by Culper Research, which triggered a sharp decline in share price.

The market reaction was swift, with the stock losing approximately 31.6% of its value over two trading days following the initial disclosures. Confidence eroded further on March 26, 2026, when Cantor Fitzgerald downgraded the stock, contributing to an additional 13.9% drop. Reed Kathrein, a partner at Hagens Berman, stated the firm is actively investigating the extent to which these misleading statements concealed the company's operational reality.

Investors who suffered significant losses during the class period are encouraged to contact the firm to participate in the litigation. The investigation also extends to potential whistleblowers, with the firm noting that individuals providing original information may be eligible for rewards under the SEC Whistleblower program.