SHAREHOLDER ALERT

Pomerantz Law Firm Reminds Shareholders With Losses on Their Investment in Medbox, Inc. of Class Action Lawsuit and Upcoming Deadline - MDBX - Seite 2

However, with Medbox issuing press releases on July 1, 2014, claiming that it had become a "Fully Reporting Public Company" and on July 24, 2014, announcing that Defendant Guy Marsala ("Marsala"), who investors were assured had "a track record of driving exceptional results in both public and private companies by implementing Fortune 500 company best practices at early stage and middle market companies," had been named Chairman of Medbox's Board and was appointed as President and CEO of the Company, replacing Defendant Bruce Bedrick ("Bedrick"), the price of Medbox stock remained artificially inflated, closing at $14.70 per share on July 24, 2014; the Company was also able to facilitate the sale of $5.5 million in convertible debentures in private placements during July and September 2014.

On or about October 17, 2014, the Company disclosed that Defendant Mehdizadeh had resigned as an officer of Medbox but that he would continue to serve the Company as a consultant with the title of Founder and Senior Advisor.

Then, on or about October 21, 2014, the Company disclosed that Medbox's Chief Financial Officer ("CFO") Thomas Iwanski ("Iwanski") -- who was just hired in that capacity by the Company in February 2014 -- was being replaced by Defendant Douglas Mitchell ("Mitchell"), though Iwanski too would stay on as a consultant. Thereafter, on October 31, 2014, the Company disclosed that it had appointed a special board committee to investigate a letter from a former Company employee to the SEC "alleging wrongdoing by a former officer of the Company who [was] a consultant to the Company" and that "a federal grand jury document subpoena [had been] served in August 2014 on the Company's accountants by the U.S. Department of Justice..."

On November 3, 2014, a press release was issued stating it was released by Medbox entitled "Medbox Comments on Recent 8-K Filing" which claimed that the former employee who sent the letter to the SEC had done so in retribution for Medbox's refusal to pay him a cash settlement, quoting Defendant Mehdizadeh, and further stating that "[c]urrent management commented that the Company ha[d] not found any indications that the subject matter contained in the [former employee's] letter [was] true concerning the conduct of prior officers of the company."