ADMA Biologics Faces Securities Lawsuit Over Alleged Revenue Inflation

The legal action centers on accusations that ADMA Biologics artificially inflated its financial performance. Plaintiffs claim the company reported 20% revenue growth during the class period, though third-party research later estimated actual growth at negative 3%. Central to the dispute are allegations that ADMA shipped unwanted quantities of its product, ASCENIV, to distributors to fabricate demand—a practice known as channel stuffing—while simultaneously misrepresenting the efficacy of its internal financial controls in seven consecutive SEC filings.

Further scrutiny surrounds the company's relationship with Genesis BioPharma Services. The lawsuit claims ADMA failed to disclose sales to this entity, which allegedly operated out of the company’s Ramsey, New Jersey headquarters and shared ownership ties with the Grossman family. These omissions occurred despite the company’s formal certifications that its disclosure procedures remained effective. The situation intensified in February 2026 when the company's CFO resigned with only one week's notice. Joseph E. Levi, an attorney representing the class, argues that these combined failures deprived shareholders of the transparency required to assess material risks to their investments.