# Biotech hit with federal lawsuit over fake revenue — short the crash

_AI-generated trading idea · SHORT · ADMA_

> Canonical page: https://commonquant.ai/research/for-you/biotech-hit-with-federal-lawsuit-over-fake-revenue-short-the--c78b051b-dafe-464f-8518-e9baa865d9df

ADMA Biologics just got hit with a federal lawsuit accusing the company of artificially inflating its revenue numbers.

## Idea

Lawsuits alleging fake revenue numbers almost always trigger a panic sell-off as investors run for the exits to avoid the unknown. Even if the company eventually defends itself, the stock price usually gets dragged down by the bad headlines and uncertainty in the short term. This makes it a prime candidate to bet against as the selling pressure builds.

## Key details

- Symbols: ADMA
- Timeframes: 1H
- Tags: \#stock, \#legal, \#momentum

## Community

- Upvotes: 13
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [ADMA Biologics (ADMA) Hit With Federal Securities Lawsuit Over Revenue Inflation Allegations](https://finance.yahoo.com/markets/stocks/articles/adma-biologics-adma-hit-federal-203437698.html) — Yahoo Finance

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