ADMA Biologics Faces Securities Fraud Lawsuit Over "Channel Stuffing" Claims
ADMA Biologics is being sued for securities fraud following allegations of "channel stuffing" that allegedly misled investors. The lawsuit claims the company's reported growth was inflated through improper practices.
ADMA Biologics, Inc. and certain of its senior executives are facing a securities fraud class action lawsuit filed on behalf of investors. The suit alleges that the company violated federal securities laws, leading to significant financial losses for shareholders after its stock price plummeted.
The core of the lawsuit, filed in the U.S. District Court for the District of New Jersey, centers on allegations of "channel stuffing." A report by research firm Culper Research, published on March 24, 2026, claimed that ADMA Biologics artificially boosted its reported 20% growth for 2025. The report asserted that this growth was achieved by inducing a distributor to stockpile ASCENIV, the company's flagship product, through rebates and extended payment terms.
According to Culper Research, had ADMA not engaged in this alleged scheme, its revenue would have declined by 3% in 2025 instead of showing growth. This revelation caused ADMA's stock to drop 16.6% on March 24, 2026, and further declined in the following days. News that Cantor Fitzgerald had downgraded the stock due to concerns raised by the short report contributed to additional price drops.
The lawsuit seeks to represent investors who purchased ADMA Biologics securities during the relevant period. Investors have until August 10, 2026, to petition the court to lead the case. ADMA Biologics is a biopharmaceutical company focused on specialty biologics, including its product ASCENIV for treating Primary Humoral Immunodeficiency.