Robbins Umeda LLP Announces the Filing of a Class Action Suit Against JBI, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, announces the filing of a federal securities class action by an investor in the U.S. District Court District of Nevada on behalf of purchasers of JBI, Inc. (OTC: JBII) shares between August 28, 2009 and July 20, 2011 (the “Class Period”).
JBI purports to be a domestic alternative oil and gas company, with proprietary technologies and processes capable of converting waste plastics into fuel. The company was incorporated in 2006, and is headquartered in Cambridge, Massachusetts.
The complaint charges certain officers and directors of JBI with issuing materially false and misleading statements to investors designed to deceive the market and artificially inflate the value of the company. More specifically, beginning on August 28, 2009, JBI deceived investors about the value of media credits obtained through various acquisitions, failed to prepare financial results in accordance with Generally Accepted Accounting Principles, and maintained deficient internal and financial controls at the company.
On May 21, 2010, JBI disclosed that its financial statements for the 2009 fiscal year and third quarter of 2009 should no longer be relied upon. On this news, shares of JBI declined $0.65 per share, more than 21%, to close on May 21, 2010, at $2.40 per share, and further declined $0.80 per share, more than 33%, to close on May 24, 2010, at $1.60 per share. Additionally, on July 20, 2011, JBI disclosed that the staff of the U.S. Securities and Exchange Commission’s (“SEC”) Division of Enforcement issued a “Wells Notice” to the company indicating that it intended to recommend that the SEC file a civil lawsuit against the company.
If you purchased stock in JBI during the Class Period and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.