Johnson & Weaver, LLP Files Class Action Suit against Medbox, Inc.
SAN DIEGO–(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. (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 (firstname.lastname@example.org) 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 athttps://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 https://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Jim Baker, 619-814-4471
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