Johnson & Weaver, LLP Files Class Action Suit against Medbox, Inc.
January 21 2015 - 9:01PM
Business Wire
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. Attorney advertising. Past results
do not guarantee future outcomes.
Johnson & Weaver, LLPJim Baker,
619-814-4471jimb@johnsonandweaver.com