The top brass of pharmaceutical company ADMA Biologics Inc., among other things, failed to disclose certain related-party transactions the company engaged in and a channel-stuffing scheme to create the appearance of revenue, according to a shareholder derivative suit filed Monday. Plaintiff filed a complaint against ADMA’s CEO, its Chief Financial Officer, and several board members, alleging that between August 2024 and March 2026, ADMA’s regulatory filings failed to disclose transactions with related party Genesis BioPharma Services, which operates out of ADMA’s headquarters The defendants allegedly hid from investors that ADMA was shipping unwanted amounts of the company’s immunoglobulin products to distributors — in a practice known as channel stuffing — to create the appearance of heightened demand and revenue.
The article can be viewed here: ADMA – Biopharma Co. Brass Sued Over ‘Channel Stuffing’ Disclosures – Law360
