Three senior officers of ADMA Biologics personally certified financial statements that allegedly concealed a channel stuffing scheme and undisclosed related party transactions, exposing them to individual liability under federal securities law
NEW YORK, June 15, 2026 (GLOBE NEWSWIRE) — Levi & Korsinsky, LLP alerts investors in ADMA Biologics, Inc. (NASDAQ: ADMA) of a pending securities class action naming senior executives as individual defendants. Class Period: August 9, 2024 through March 25, 2026. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500.
ADMA’s reported ASCENIV revenue grew from $92.6 million in 2023 to $362.5 million in 2025. A March 2026 investigative report alleged this growth was fiction driven by channel stuffing, estimating real revenue declined 3% in 2025 versus the 20% reported. The Court has set August 10, 2026 as the deadline to apply for lead plaintiff appointment.
The Named Individual Defendants
The securities action names three individuals:
- Adam S. Grossman, CEO and President, who signed SOX certifications on every quarterly and annual SEC filing throughout the Class Period, attesting to the accuracy of financial reporting and effectiveness of internal controls
- Jerrold V. Grossman, Vice Chairman and Company co-founder, who signed both the 2024 and 2025 Annual Reports and co-owns GenesisBPS, the entity at the center of the undisclosed related party allegations
- Brad Tade, former CFO, who co-signed SOX certifications alongside Adam Grossman on all SEC filings during the Class Period before abruptly departing on February 25, 2026, reportedly providing just one week’s notice
Sarbanes-Oxley Certification Obligations
Under Sections 302 and 906 of the Sarbanes-Oxley Act, the CEO and CFO personally certify that SEC filings do not contain untrue statements of material fact, that financial statements fairly present the company’s condition, and that they have disclosed all significant deficiencies in internal controls and any fraud involving management.
The complaint charges that these certifications were materially false across seven consecutive SEC filings because:
- The Company allegedly operated a channel stuffing scheme that inflated ASCENIV revenues
- Sales to Genesis BioPharma Services, an entity operating from ADMA’s own headquarters, were allegedly never disclosed as related party transactions
- Internal controls were certified as effective despite allegedly failing to prevent or detect either the channel stuffing or the related party omission
- Each quarterly and annual report disclosed purchases from GenesisBPS but allegedly omitted sales to the similarly named Genesis BioPharma Services
Section 20(a) Control Person Framework
Section 20(a) of the Securities Exchange Act of 1934 imposes liability on individuals who control a company that violates Section 10(b). The complaint asserts each Individual Defendant directly participated in management, was involved in day-to-day operations at the highest levels, had access to confidential information, and was directly or indirectly involved in drafting and reviewing the allegedly false statements.
The timing of Brad Tade’s departure is cited as supporting an inference of scienter. Tade reportedly informed the Company on February 20, 2026 that he was leaving the CFO role, and his departure became effective just five days later on February 25, 2026. The Culper Research report exposing the alleged scheme was published less than one month later.
“Corporate officers have a duty to ensure their companies’ public statements are accurate and complete. When executives personally certify financial disclosures under Sarbanes-Oxley, they accept individual responsibility for those representations.” — Joseph E. Levi, Esq.
Check if you can recover your investment losses
or call (212) 363-7500.
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Frequently Asked Questions About the ADMA Lawsuit
Q: Who are the defendants named in the ADMA lawsuit? A: The complaint names ADMA Biologics, Inc. and three individual defendants: CEO Adam S. Grossman, Vice Chairman Jerrold V. Grossman, and former CFO Brad Tade. Each allegedly signed or certified SEC filings containing materially false statements during the Class Period.
Q: What specific misstatements does the ADMA lawsuit allege? A: The complaint alleges ADMA made materially false statements regarding the effectiveness of internal controls, failed to disclose related party transactions with Genesis BioPharma Services, and omitted that the Company was shipping unwanted ASCENIV inventory to distributors to inflate reported revenues.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I already sold my ADMA shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.
Q: What do ADMA investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
