Glancy Binkow and Goldberg LLP launch an Investigation of Medbox Inc
Glancy Binkow & Goldberg LLP announces that it is investigating potential claims on behalf of investors of Medbox, Inc. (“Medbox” or the “Company”) (OTC:MDBX) concerning possible violations of federal securities laws. The investigation is focused on certain statements issued by Medbox concerning the Company’s operations and financial performance.
Please contact Lesley Portnoy or Casey Sadler at (310) 201-9150, or at[email protected] to discuss this matter. If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
Medbox provides patented biometrically controlled medicine storage and dispensing systems to the medical and retail industries. The investigation is related to the Company’s December 30, 2014, announcement that Medbox’s audit committee, following an internal review by management of certain prior-period financial reporting, has concluded that the Company’s consolidated financial statements for the year ended December 31, 2013, for the third and fourth quarters of 2013, and for the quarters ended March 31, 2014, June 30, 2014, and September 30, 2014, should no longer be relied upon and will be restated.
According to the Company, the internal review was initiated in October 2014 to investigate a federal grand jury subpoena pertaining to the Company, which was served upon the Company’s accountants, as well as certain alleged wrongdoing raised by a former employee of the Company. The Company subsequently received subpoenas from the federal grand jury and the Securities and Exchange Commission.
The Company stated that “it appeared that revenue had been recognized too soon on some customer contracts,” and the restated financial statements “will recognize revenue at a later time as up-front payments are recognized over the longer of the contract period or the customer relationship, revenue is deferred until key contingencies are removed and it is clear the revenue has been earned in accordance with GAAP and SEC regulations.” Other adjustments to Medbox’s financial statements are also possible in connection with the Company’s ongoing review of its prior period financial statements, including the financial statements for 2012 and for the first two quarters of 2013.
If you purchased Medbox shares, if you have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, or Casey Sadler, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at (310) 201-9150, Toll Free at (888) 773-9224, by e-mail to [email protected], or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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Source: Business Wire (December 30, 2014 – 1:12 PM EST)