WAYNE, Pa., Jan. 23, 2015 /PRNewswire/ -- Ryan &
Maniskas, LLP announces that a class action lawsuit has been filed
in 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: MDBX) between November 20, 2013 and December 29, 2014, inclusive (the "Class
Period").
Medbox shareholders may, no later than March 23, 2015, move the Court for appointment as
a lead plaintiff of the Class. If you purchased shares of
Medbox and would like to learn more about these claims or if you
wish to discuss these matters and have any questions concerning
this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877)
316-3218 or to sign up online, visit:
www.rmclasslaw.com/cases/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 failed to disclose the
following: (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 are a member of the class, you may, no later than
March 23, 2015, request that the
Court appoint you as lead plaintiff of the class. A lead
plaintiff is a representative party that acts 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.
Under certain circumstances, one or more class members may
together serve as "lead plaintiff." Your ability to share in
any recovery is not, however, affected by the decision whether or
not to serve as a lead plaintiff. You may retain Ryan &
Maniskas, LLP or other counsel of your choice, to serve as your
counsel in this action.
Ryan & Maniskas, LLP is a national shareholder litigation
firm. Ryan & Maniskas, LLP is devoted to protecting the
interests of individual and institutional investors in shareholder
actions in state and federal courts nationwide.
CONTACT: Ryan & Maniskas, LLP
Richard A. Maniskas,
Esquire
995 Old Eagle School Rd., Suite
311
Wayne, PA
19087
877-316-3218
rmaniskas@rmclasslaw.com
www.rmclasslaw.com/cases/mdbx
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SOURCE Ryan & Maniskas, LLP