Law Offices of Howard G. Smith, Representing Shareholders of JBI, Inc., Announces a September 26, 2011 Lead Plaintiff Deadlin...
September 21 2011 - 9:15PM
Law Offices of Howard G. Smith announces that all persons or
entities who purchased the securities of JBI, Inc. ("JBI" or the
"Company") (Pink Sheets:JBII) between August 28, 2009 and July 20,
2011, inclusive (the "Class Period"), have until September 26, 2011
to file a motion with the Court to be appointed as Lead Plaintiff.
The securities fraud class action lawsuit was filed in the United
States District Court for the District of Nevada.
The Complaint charges JBI and certain of the Company's current
and former executive officers with violations of federal securities
laws. JBI purports to be a domestic alternative oil and gas
company. In 2009, the Company acquired JavaCo, Inc. ("JavaCo")
from Domark International, Inc. ("Domark") and also issued 1
million shares of JBI to Domark in exchange for media credits
valued at approximately $9.9 million. The Complaint alleges
that throughout the Class Period 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; (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 filed a Form 8-K with the Securities and
Exchange Commission (SEC) stating that the Company's previously
issued financial statements for the year ended December 31, 2009,
and the interim financial statements for the period ended September
30, 2009, should no longer be relied upon due to questions
regarding "the accounting treatment and related disclosures of two
acquisitions which were completed during 2009 and the valuation of
media credits acquired by the Company during 2009 through the
issuance of common stock."
On July 20, 2011, JBI disclosed that the 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. According to the
Company, the proposed lawsuit relates to the Company's restated
financial statements for the third quarter and year ended December
31, 2009, which concerned the Company's "valuation of media
credits, accounting for certain acquisitions, and equity
issuances."
Following this news, JBI shares declined $0.62 per share, nearly
24%, to close on July 21, 2011, at $2.00 per share, on unusually
heavy trading volume.
No class has yet been certified in the above action. Until a
class is certified, you are not represented by counsel unless you
retain one. If you purchased JBI securities between August 28,
2009 and July 20, 2011, you have until September 26, 2011 to move
for lead plaintiff status. To be a member of the class you
need not take any action at this time; you may retain counsel of
your choice or take no action and remain an absent class
member. If you wish to discuss this action or have any
questions concerning this Notice or your rights or interests with
respect to these matters, please contact Howard G. Smith, Esquire,
of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020, by telephone at (215)638-4847,
Toll-Free at (888)638-4847, by email to
howardsmith@howardsmithlaw.com or visit our website at
http://www.howardsmithlaw.com.
CONTACT: Law Offices of Howard G. Smith
Howard G. Smith, Esquire
(215) 638-4847
(888) 638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
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