ADMA Biologics allegedly certified internal controls as effective while concealing channel stuffing and an undisclosed related party distributor operating from company headquarters.
NEW YORK, June 17, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in ADMA Biologics, Inc. (NASDAQ: ADMA) of a pending securities class action. Class Period: August 9, 2024 through March 25, 2026. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com | (212) 363-7500.
A March 2026 research report alleged that ADMA's reported 20% revenue growth was fictitious, estimating real growth at negative 3%. The Court has set August 10, 2026 as the deadline to apply for lead plaintiff appointment.
The Alleged Internal Controls Breakdown
Across seven consecutive SEC filings during the Class Period, management certified that disclosure controls and procedures were "effective at the reasonable assurance level." The lawsuit asserts these certifications were materially false because the Company was simultaneously operating a channel stuffing scheme and failing to disclose a related party transaction with an entity sharing nearly the same name as a disclosed affiliate.
Specifically, the action claims ADMA disclosed purchases from "GenesisBPS" in its related party transaction notes but omitted sales to "Genesis BioPharma Services," a separate entity that allegedly operated out of ADMA's own corporate headquarters in Ramsey, New Jersey. The two entities share overlapping ownership ties to the Grossman family.
Biopharmaceutical Revenue Controls and the ASCENIV Question
- The Company's SEC filings stated product revenue was recognized "when the customer is deemed to have control over the product," yet the lawsuit contends ADMA shipped unwanted quantities of ASCENIV to distributors to fabricate demand
- Internal control certifications under Sarbanes-Oxley were signed repeatedly despite the alleged channel stuffing scheme and undisclosed related party
- Related party disclosures across the Q2 2024, Q3 2024, 2024 Annual, Q1 2025, Q2 2025, Q3 2025, and 2025 Annual Reports each allegedly omitted the Genesis BioPharma Services sales relationship
- The Company's CFO abruptly departed in February 2026, reportedly providing only approximately one week's notice before the departure became effective
- ASCENIV was priced at approximately $900 per gram, a 6-to-10x premium over standard IVIGs, yet payors allegedly treated the product as functionally identical to lower-cost alternatives
Why Disclosure Control Failures Allegedly Matter to ADMA Investors
The lawsuit contends that effective internal controls would have prevented the simultaneous occurrence of undisclosed related party sales and a channel stuffing scheme that persisted across seven quarterly and annual filing periods. As alleged, the controls were not merely weak in one area but failed to capture two distinct categories of material information that directly affected reported revenue and required disclosure.
Speak with an attorney about recovering damages or call (212) 363-7500.
"Investors deserve transparency about material risks that could affect their investments. When a company certifies its internal controls as effective while allegedly concealing both a revenue inflation scheme and a related party transaction, shareholders are denied the accurate information they need to make informed decisions." -- Joseph E. Levi, Esq.
WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.
Frequently Asked Questions About the ADMA Lawsuit
Q: Who is eligible to join the ADMA investor lawsuit? A: Investors who purchased ADMA stock or securities between August 9, 2024 and March 25, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: What specific misstatements does the ADMA lawsuit allege? A: The complaint alleges ADMA made materially false or misleading statements regarding the effectiveness of its internal controls over financial reporting and failed to disclose a related party transaction and a channel stuffing scheme affecting ASCENIV revenue. When the true state was revealed through a third-party research report, the stock price declined sharply.
Q: What do ADMA investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my ADMA shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
