INVESTOR ALERT: Investigation of Medbox, Inc. Announced by Glancy Binkow & Goldberg LLP
December 30 2014 - 01:12PM
Business Wire
Glancy Binkow & Goldberg LLP announces that it is
investigating potential claims on behalf of investors of Medbox,
Inc. (“Medbox” or the “Company”) (OTC:MDBX) concerning possible
violations of federal securities laws. The investigation is focused
on certain statements issued by Medbox concerning the Company’s
operations and financial performance.
Please contact Lesley Portnoy or Casey Sadler at (310) 201-9150,
or at shareholders@glancylaw.com to discuss this matter. If you
inquire by email, please include your mailing address, telephone
number and number of shares purchased.
Medbox provides patented biometrically controlled medicine
storage and dispensing systems to the medical and retail
industries. The investigation is related to the Company’s December
30, 2014, announcement that Medbox’s audit committee, following an
internal review by management of certain prior-period financial
reporting, has concluded that the Company’s consolidated financial
statements for the year ended December 31, 2013, for the third and
fourth quarters of 2013, and for the quarters ended March 31, 2014,
June 30, 2014, and September 30, 2014, should no longer be relied
upon and will be restated.
According to the Company, the internal review was initiated in
October 2014 to investigate a federal grand jury subpoena
pertaining to the Company, which was served upon the Company’s
accountants, as well as certain alleged wrongdoing raised by a
former employee of the Company. The Company subsequently received
subpoenas from the federal grand jury and the Securities and
Exchange Commission.
The Company stated that “it appeared that revenue had been
recognized too soon on some customer contracts,” and the restated
financial statements “will recognize revenue at a later time as
up-front payments are recognized over the longer of the contract
period or the customer relationship, revenue is deferred until key
contingencies are removed and it is clear the revenue has been
earned in accordance with GAAP and SEC regulations.” Other
adjustments to Medbox’s financial statements are also possible in
connection with the Company’s ongoing review of its prior period
financial statements, including the financial statements for 2012
and for the first two quarters of 2013.
If you purchased Medbox shares, if you have information or would
like to learn more about these claims, or have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Lesley Portnoy, Esquire,
or Casey Sadler, Esquire, of Glancy Binkow & Goldberg LLP, 1925
Century Park East, Suite 2100, Los Angeles, California 90067 at
(310) 201-9150, Toll Free at (888) 773-9224, by e-mail to
shareholders@glancylaw.com, or visit our website at
http://www.glancylaw.com. If you inquire by email please include
your mailing address, telephone number and number of shares
purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
Glancy Binkow & Goldberg LLP, Los Angeles, CALesley
PortnoyCasey Sadler(310) 201-9150(888)
773-9224shareholders@glancylaw.comwww.glancylaw.com