ADMA Biologics investigated for securities violations after 16.6% stock plunge

Lowey Dannenberg P.C. is investigating ADMA Biologics for potential federal securities law violations tied to alleged channel stuffing that erased 16.6% of the stock's value in a single day.

The probe follows a March 24 report from Culper Research alleging ADMA induced one of its distributors to stock excess ASCENIV inventory by offering rebates and extended payment terms to meet order expectations. According to Culper, had ADMA not engaged in the alleged scheme, it would have reported revenue declines of 3% in 2025 instead of the 20% growth it posted. ADMA's flagship product ASCENIV is a liquid immune globulin solution used to treat Primary Humoral Immunodeficiency in adults and adolescents.

ADMA shares fell $2.26, or 16.6%, to $11.33 on March 24, then dropped another 15% to $9.63 the next day. A Cantor downgrade on March 26 pushed the stock down a further 13.9% to $8.29. The cumulative decline from March 23 to March 29 erased roughly 39% of the stock's value in less than a week. The class action, Mazzarino v. ADMA Biologics, is pending in the U.S. District Court for the District of New Jersey, covering purchases between Aug. 9, 2024 and March 25, 2026.

The complaint alleges ADMA engaged in an undisclosed related party transaction, used channel stuffing to create the appearance of revenue, and lacked adequate internal controls. The company's public statements were false and materially misleading throughout the class period, according to the complaint. Investors have until Aug. 10, 2026 to seek lead plaintiff appointment. Multiple firms — including Bleichmar Fonti & Auld, Bronstein Gewirtz & Grossman, and Kahn Swick & Foti — have announced similar actions on behalf of shareholders.

The class has not yet been certified, and until certification occurs, investors are not represented by an attorney. Shareholders who choose to take no action can remain absent class members. Appointment as lead plaintiff is not required to participate in any recovery.

The investigation adds to mounting legal pressure on ADMA as multiple law firms pursue overlapping claims. The lead plaintiff deadline of Aug. 10, 2026 will determine which firm steers the case and how damages are calculated for affected shareholders. ADMA's stock now trades well below its pre-report levels, and the company faces potential financial penalties if violations are confirmed.

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