Case Page

 

Case Status:    SETTLED
On or around 11/14/2016 (Date of order of final judgment)

Filing Date: January 21, 2015

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 December 17, 2015, 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.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Medical Equipment & Supplies
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MDBX
Company Market: OTC-BB
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: C.D. California
DOCKET #: 15-CV-00426
JUDGE: Hon. Beverly Reid O'Connell
DATE FILED: 01/21/2015
CLASS PERIOD START: 11/20/2013
CLASS PERIOD END: 12/29/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Johnson & Weaver, LLP
    110 West “A” Street, Suite 750, Johnson & Weaver, LLP, CA 92101
    619.230.0063 619.230.0063 · contactus@johnsonandweaver.com
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 15-CV-00426
JUDGE: Hon. Beverly Reid O'Connell
DATE FILED: 07/27/2015
CLASS PERIOD START: 04/02/2013
CLASS PERIOD END: 12/29/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Johnson & Weaver, LLP
    110 West “A” Street, Suite 750, Johnson & Weaver, LLP, CA 92101
    619.230.0063 619.230.0063 · contactus@johnsonandweaver.com
  2. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
No Document Title Filing Date