Medbox, Inc. claimed to sell vending machines known as “Medbox” devices capable of dispensing marijuana on the basis of biometric identification.

According to the law firm press release, 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.

On April 23, 2015, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on July 27. On December 17, the parties filed a Stipulation of Settlement. The Settlement was preliminarily approved by the Court on February 3, 2016. The Settlement was granted final approval and this case was dismissed on November 14.