The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of Medbox Inc (OTCMKTS:MDBX) is onging concerning potential breaches of fiduciary duties by certain Medbox directors and officers.
Investors who are current long term investors in Medbox Inc (OTCMKTS:MDBX) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in OTCMKTS:MDBX stocks follows a lawsuit filed recently against Medbox Inc over alleged securities laws violations. The investigation on behalf of current long term investors in OTCMKTS:MDBX stocks, concerns whether certain Medbox officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Central District of California the plaintiff alleges that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 20, 2013 and December 29, 2014 Medbox allegedly overstated Medbox’s revenues by recognizing revenue on customer contracts before it had been earned and that as a result Medbox’s stock traded at allegedly artificially inflated prices between November 20, 2013 and December 29, 2014, reaching an intra-day high of $93.50 on January 8, 2014. The plaintiff further alleges that while Defendants kept the full extent of their fraud concealed between November 20, 2013 and December 29, 2014, while the market learned bits of the truth through several partial disclosures.
On February 18, 2014, a report was published stating that Medbox Inc “has systematically and repeatedly committed FRAUD on their financial statements, and the public statements they make about their financials are laced with lies.”
On December 30, 2014, Medbox Inc (OTCMKTS:MDBX) announced it will amend and restate its financial statements for the year ended December 31, 2013, the third and fourth quarters of 2013 and the first three quarters of 2014. Shares of Medbox Inc (OTCMKTS:MDBX) declined from $40.25 per share in early 2014 to as low as $1.42 per share on February 6, 2015.
On March 2, 2015, shares of Medbox Inc closed at $1.86 per share.
Those who purchased shares of Medbox Inc (OTCMKTS:MDBX) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com