ADMA Biologics faces class action after 29% stock drop on channel stuffing claims

ADMA Biologics investors filed a securities class action lawsuit after the stock plunged 29% on channel stuffing allegations.

"The lawsuit accuses the company and senior executives of violating federal securities laws," Bleichmar Fonti & Auld LLP, the law firm representing investors, said in a statement.

The complaint centers on allegations that ADMA engaged in channel stuffing — inflating revenue by pushing excess product into its distribution network — before the practice was uncovered, triggering the selloff. Multiple law firms including Pomerantz LLP and Kahn Swick & Foti LLC have issued investor notices with an Aug. 10 lead plaintiff deadline.

The 29% decline represents one of the steepest single-day drops for a biopharmaceutical company this year, exposing ADMA to potential financial penalties, reputational damage, and heightened regulatory scrutiny. The company, which specializes in plasma-derived biologics for immune-deficient patients, now faces a class period yet to be defined by the court.

The lawsuit adds to a growing wave of securities fraud claims targeting biotech and pharmaceutical companies over revenue recognition practices. Investors who purchased ADMA shares during the relevant period have until Aug. 10 to apply for lead plaintiff status. The case will be heard in federal court, with a judge expected to appoint a lead plaintiff in the coming months.

This article is for informational purposes only and does not constitute investment advice.