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Medbox Inc (OTCMKTS:MDBX) has found itself in quiet a few problems, resulting in repeated losses to the company’s stock. One of the company’s investors has filed a lawsuit against certain members of the board. Additionally, the company’s ticker started the year off at a share price of $6, but half year through, the stock has lost more than 90% of its value.

The lawsuit states that certain directors of the company have been lying about the financial health of MDBX and misleading investors into buying their stock. The case concerns shares bought before November 20, 2013 and any investors who still hold these shares can contact the Shareholders Foundation for assistance. The lawsuit states that the directors had been recognizing revenues on contracts, before they were even earned. This led to overstatement of revenues and inflated stock prices for MedBox.

The truth about the finances, however, came in bits of disclosures by the company, long after the benefits of the false statements had been reaped. The directors have agreed to amend the financial statements from 3Q2013 up to 4Q2014. The fraud has left the company with very little investor trust. Most investors are trying to get away from MDBX, which is showing no signs of recovery. One of the most honest filings by the company was its 1Q2015, which showed the true picture of the company.

In its 1Q2015, the company reported $92,000 in cash, $1.48 million in assets and just $41,000 in quarterly revenues. On the other hand, company liabilities stood at $10.27 million, with a quarterly net loss of $4.43 million. Subsequently, investor confidence in MDBX is at an all time low. Medbox has tried to lift the ticker with a series of press-releases and presentations on various forums, but to no avail.

Medbox Inc (OTCMKTS:MDBX) ended the July 1 session with a loss of 10.16% to its share value, after experiencing a trade volume of 1.76 million. The stock closed at $0.115 at the final bell.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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