This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Medbox Shares Tumble On Fresh Accounting Concerns

NEW YORK (TheStreet) --Medbox MDBX, a controversial maker of medical marijuana vending machines that trades on the off-exchange OTCPink marketplace, saw shares fall more than 6% Tuesday after a report accused the company of "MULTIPLE FRAUDS" [the caps are from the report] and a law firm cited the report in announcing an investigation of Medbox.

Medbox shares lost 6.14% Tuesday to close at $30, according to the Web site of OTCMarkets, which operates the OTCPink marketplace. The shares bounced between $26.37 and $33.24 on the day. 

The 13-page report was from a company called Citron Research, which says it is in its "13th year of publishing investigative research into suspect publicly traded companies." Citron claims it "has exposed more corporate fraud than any other source on Wall Street."

After citing a previous report on Medbox from the Southern Investigative Reporting Foundation, which pointed to irregularities in Medbox corporate filings, the Citron report pointed to several new red flags. For example, on Nov. 19, Medbox reported a profit for the quarter ended Sept. 30 in a filing with OTCMarkets. However, a Jan. 21 filing with the Securities and Exchange Commission covering the same period shows Medbox is losing money, Citron claims.

The Citron report was published Tuesday morning. Tuesday afternoon, Johnson & Weaver, a law firm, issued a press release citing the Citron report and saying it would investigate.

Medbox followed up with a press release of its own, stating it "discovered some errors in accounting which we have since corrected in the latest financials."

Medbox has not yet responded to TheStreet's request for comment on this story.

Follow @dan_freed

Related: Medbox CEO Weighs in on Marijuana Stocks.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
MDBX $1.41 0.00%
AAPL $124.24 0.00%
FB $83.01 0.00%
GOOG $555.17 0.00%
TSLA $190.41 0.00%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs