Pot Dispenser Co. Faces Suit Over Fraudulent Finances
By Matt Sharp (January 22, 2015, 3:33 PM EST) -- Medical marijuana dispenser Medbox Inc. allegedly issued false and misleading statements and fraudulently overstated its earnings, causing its stock to plummet 95 percent as the truth came out, according to a class action filed in California federal court on Wednesday.
The complaint alleges that Medbox and its officers schemed to artificially inflate and manipulate its stock price between November 2013 and December 2014 by lying about its finances and including unearned revenue on customer contracts, deceiving the public and the company's investors in a plot that caused losses for some shareholders.
"In ignorance of the fact that the market price of...
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