CASES
JBI, Inc.
Class Period: Aug 28, 2009 to Jul 20, 2011
Lead Plaintiff Deadline: Sep 26, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against JBI, Inc. ("JBI" or the "Company") on behalf of all persons who purchased the securities of JBI between August 28, 2009 to July 20, 2011. This case has been filed in the USDC - Nevada.
The Complaint alleges as follows: Throughout the Class Period, Defendants knew or recklessly disregarded that their public statements concerning JBI's business, operations and prospects were materially false and misleading. Specifically, the Defendants made false and/or misleading statements and/or failed to disclose: (1) that the media credits acquired by the Company in connection with the acquisition of JavaCo were substantially overvalued; (2) that the Company was improperly accounting for acquisitions; (3) that, as such, the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On May 21, 2010, JBI disclosed that its previously issued financial statements for the 2009 fiscal year and third quarter should no longer be relied upon due to the accounting treatment and related disclosures of two acquisitions completed in 2009, and the valuation of media credits acquired by JBI through the issuance of common stock. 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, on heavy volume, and further declined $0.80 per share, more than 33%, to close on May 24, 2010, at $1.60 per share, also on heavy volume.
On July 20, 2011, JBI disclosed that the staff of the United States Securities and Exchange Commission's ("SEC") Division of Enforcement issued a "Wells Notice" to JBI indicating that the staff intended to recommend that the SEC file a civil lawsuit alleging that the Company violated certain provisions of the federal securities laws. JBI indicated its belief that the proposed lawsuit related to the Company's restated financial statements for the 2009 fiscal year and third quarter, and that the staff may also recommend naming one or more current and former officers of JBI as Defendants. On this news, shares of JBI declined $0.62 per share, nearly 24%, to close on July 21, 2011, at $2.00 per share, on unusually heavy volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.