#USA #New York #Securities Class Action #Levi Korsinsky #ADMA Biologics

ADMA Biologics Faces Class Action Lawsuit

Investors in ADMA Biologics, Inc. are facing a significant legal situation as Levi & Korsinsky, LLP announces a pending securities class action lawsuit against the biopharmaceutical company. This legal action stems from allegations against several senior executives, asserting that they knowingly provided false financial statements. From August 9, 2024, to March 25, 2026, the complaint outlines a serious narrative involving claims of a deceptive channel-stuffing scheme and undisclosed related-party transactions.

Background of the Case

ADMA Biologics, a publicly traded company on NASDAQ (ticker: ADMA), has reported remarkable growth in revenues related to its immunoglobulin therapy, ASCENIV. Revenue figures soared from $92.6 million in 2023 to $362.5 million in 2025. However, a report released in March 2026 raised serious concerns over these figures, suggesting that the actual revenue had declined by 3% in 2025, contrasting with the purported growth of 20% as reported by the company. These discrepancies form the crux of the allegations against the company and its executives.

The Individual Defendants

The lawsuit names three key figures:
1. Adam S. Grossman, CEO and President, who personally certified the accuracy of financial statements for all SEC filings during the class period.
2. Jerrold V. Grossman, Vice Chairman and co-founder, also acknowledged for signing significant annual reports. He is linked to GenesisBPS, an entity involved in undisclosed related-party allegations.
3. Brad Tade, the former CFO who abruptly left his position in February 2026, shortly after the issues began to surface. His departure has been interpreted as a warning sign of underlying issues within the company's financial disclosures.

Legal Implications

The allegations outlined in the lawsuit hinge upon violations of the Sarbanes-Oxley Act, requiring executives to certify the integrity of financial reports and internal controls. According to the complaint, the executives failed to disclose essential information regarding related-party transactions and manipulated sales figures to depict inflated revenue numbers, thereby misleading investors and regulators alike.

The suit contends that these practices not only violate securities law but also undermine the confidence investors place in corporate disclosures. Individual liability is emphasized under Section 20(a) of the Securities Exchange Act of 1934, holding executives accountable for mismanagement and deceptive practices that affect investors.

The Path Ahead for Investors

Investors who suffered losses during the stated class period are urged to take action. Levi & Korsinsky specifies that those interested can check their eligibility to recover losses. Potential claimants are advised to gather pertinent documentation, such as brokerage records detailing their transactions within the relevant time frame.

The deadline for applying for lead plaintiff status has been set for August 10, 2026. Lead plaintiffs play a crucial role in class action lawsuits as they represent the interests of all affected investors, providing oversight and direction for the case.

Frequently Asked Questions

1. Who are the defendants? The lawsuit identifies ADMA Biologics and key executives Adam Grossman, Jerrold Grossman, and Brad Tade as defendants for their roles in misleading disclosures.
2. What are the alleged wrongdoings? Key allegations include falsely certified financial reports, undisclosed related-party transactions, and deceptive accounting practices.
3. Am I still eligible for recovery if I sold my shares? Yes, eligibility for recovery is based on when shares were purchased, regardless of current holdings.
4. What will it cost to participate? There are no upfront fees associated with joining the class action—these cases are handled on a contingency basis, meaning plaintiffs will not incur costs unless they recover damages.

Conclusion

This case highlights the importance of corporate transparency and corporate executives’ responsibility in providing truthful information to shareholders. Individuals who believe they may be affected should reach out to Levi & Korsinsky for further information and guidance. This situation not only threatens the company's reputation but also emphasizes the necessity for stringent adherence to financial regulations to protect investors and maintain market integrity.

For inquiries, investors can contact Levi & Korsinsky at (212) 363-7500 or via email at [email protected].