Shareholder rights law firm Johnson & Weaver, LLP announced today that a
class action has been commenced in the United States District Court for
the Central District of California on behalf of purchasers of Medbox,
Inc. (NASDAQ: MDBX) common stock during the period between November 20,
2013 and December 29, 2014 (the “Class Period”).
If you wish to serve as a lead plaintiff, you must move the Court no
later than 60 days from today. If you wish to discuss this action, have
any questions concerning this notice, or your rights or interests,
please contact lead analyst Jim Baker (jimb@johnsonandweaver.com)
at 619-814-4471. If you email, please include your phone number. If you
are a member of this class, you can view a copy of the complaint as
filed or join this class action online at http://www.johnsonandweaver.com.
Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
The complaint alleges that during the Class Period, Medbox overstated
the Company’s revenues by recognizing revenue on customer contracts
before it had been earned. As a result, the complaint alleges that
Medbox’s stock traded at artificially inflated prices during the Class
Period, reaching an intra-day Class Period high of $93.50 on January 8,
2014. The complaint further alleges that while Defendants kept the full
extent of their fraud concealed throughout the Class Period, the market
learned bits of the truth through several partial disclosures. Finally,
on the morning of December 30, 2014, before the opening of trading,
Medbox issued a press release disclosing that it would be forced to
restate the past five quarters of financial reports and
potentially its “financial statements for 2012 and for the first two
quarters of 2013…as well.” The Company further disclosed that the
earnings restatement had triggered a default on its debt covenants that
had forced it to seek forbearance from lenders. As the market learned
the truth, Medbox stock was hammered by massive sales, sending its stock
down more than 95% from its Class Period high to trade as low as $4.50
per share in intra-day trading on December 30, 2014.
Plaintiff seeks to recover damages on behalf of all purchasers of
Medbox’s common stock during the Class Period.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law
firm with offices in California, New York and Georgia. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits. For more information
about the firm and its attorneys, please visit http://www.johnsonandweaver.com.
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