WILMINGTON, Del., Jan. 22, 2015 /PRNewswire/ -- Rigrodsky &
Long, P.A.:
- Do you, or did you, own shares of Medbox, Inc. (OTC QB:
MDBX)?
- Did you purchase your shares between November 20, 2013 and December 29, 2014, inclusive?
- Did you lose money in your investment in Medbox,
Inc.?
- Do you want to discuss your rights?
Rigrodsky & Long, P.A., including former Special Assistant
United States Attorney, Timothy J.
MacFall, announces that a complaint has been filed in the
United States District Court for the Central District of
California on behalf of all
persons or entities that purchased the common stock of Medbox, Inc.
("Medbox" or the "Company") (OTC QB: MDBX) between November 20, 2013 and December 29, 2014, inclusive (the "Class
Period"), alleging violations of the Securities Exchange Act of
1934 against the Company and certain of its officers (the
"Complaint").
If you purchased shares of Medbox during the Class Period, or
purchased shares prior to the Class Period and still hold Medbox,
and wish to discuss this action or have any questions concerning
this notice or your rights or interests, please contact Timothy J.
MacFall, Esquire or Peter Allocco of
Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120,
Wilmington, DE 19803 at (888)
969-4242; by e-mail to info@rl-legal.com; or at:
http://www.rigrodskylong.com/investigations/medbox-inc-mdbx.
Medbox, through its subsidiary Medicine Dispensing Systems,
sells its patented vending machines that dispense medical
marijuana, software and consulting services to pharmacies,
alternative medicine dispensaries and local governments in the
United States. The Complaint alleges that throughout the
Class Period, defendants made materially false and misleading
statements, and omitted materially adverse facts, about the
Company's business, operations and prospects. Specifically,
the Complaint alleges that the defendants concealed from the
investing public that: (1) Medbox was recognizing revenue before
earned on certain customer contracts; (2) Medbox lacked effective
internal controls; (3) due to its false financial reporting, Medbox
was not complying with Generally Accepted Accounting Principles or
SEC rules and regulations during the Class Period and, as such, was
not eligible for listing on a national exchange; (4) due to its
financial misstatements, Medbox was not in compliance with its debt
covenants; and (5) as a result, Medbox was not on track to achieve
its financial targets during the Class Period. As a result of
defendants' alleged false and misleading statements, the Company's
stock traded at artificially inflated prices during the Class
Period.
According to the Complaint, on 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 quarter 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 a forbearance from lenders. The
release stated that the "steps [being taken were] part of the
continued initiative of [Medbox's] new board of directors and new
management team to implement better controls and emphasize
transparency."
On this news, shares in Medbox fell almost 13%, closing at
$5.58 per share on December 31, 2014, on high trading
volume.
If you wish to serve as lead plaintiff, you must move the Court
no later than March 23,
2015. A lead plaintiff is a representative party
acting on behalf of other class members in directing the
litigation. In order to be appointed lead plaintiff, the
Court must determine that the class member's claim is typical of
the claims of other class members, and that the class member will
adequately represent the class. Your ability to share in any
recovery is not, however, affected by the decision whether or not
to serve as a lead plaintiff. Any member of the proposed
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.
While Rigrodsky & Long, P.A. did not file the Complaint in
this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates
securities class, derivative and direct actions, shareholder rights
litigation and corporate governance litigation, including claims
for breach of fiduciary duty and proxy violations in the
Delaware Court of Chancery and in
state and federal courts throughout the
United States.
Attorney advertising. Prior results do not guarantee a
similar outcome.
CONTACT:
Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire
Peter Allocco
(888) 969-4242
(516) 683-3516
Fax: (302) 654-7530
info@rl-legal.com
http://www.rigrodskylong.com
To view the original version on PR Newswire,
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SOURCE Rigrodsky & Long, P.A.