STEVENSON, Md., Jan. 23, 2015 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Medbox, Inc. ("Medbox" or the "Company") (Other OTC: MDBX ) common stock during the period between November 20, 2013 and December 29, 2014, inclusive (the "Class Period"). Investors who wish to become proactively involved in the litigation have until March 23, 2015 to seek appointment as lead plaintiff.
If you have suffered a loss from investment in Medbox common stock purchased on or after November 20, 2013 and held through the revelation of negative information during and/or at the end of the Class Period, as described below, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html . You may also request more information by contacting Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company common stock during the Class Period. Brower Piven also encourages anyone with information regarding the Company's conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants' failure to disclose during the Class Period that Medbox was recognizing revenue before earned on certain customer contracts, that Medbox was not complying with Generally Accepted Accounting Principles or SEC rules and regulations and was ineligible for listing on a national exchange, and that due to its financial misstatements the Company was not in compliance with its debt covenants or on track to achieve its financial targets during the Class Period. According to the complaint, following the Company's December 30, 2014 announcement that it would be forced to restate its financial reports for the past five quarters as well as potentially its financial statements for 2012 and the first two quarter of 2013 and that the earnings restatement had triggered a default on its debt covenants that had forced the Company to seek forbearance from lenders, the value of Medbox shares declined significantly.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.
Charles J. Piven Brower Piven, A Professional Corporation 1925 Old Valley Road Stevenson, Maryland 21153 Telephone: 410-415-6616
