LOS ANGELES, Sept. 20, 2011 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased the securities of JBI, Inc. ("JBI" or the "Company") (OTCQX: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.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201‑9150 or Toll Free at (888) 773‑9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
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 $9,997,134. 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 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 an additional $0.80 per share, more than 33%, to close on May 24, 2010, at $1.60 per share, on heavy volume.
Then, 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.
If you are a member of the class described above, you may move the Court, no later than September 26, 2011, to serve as lead plaintiff; however, you must meet certain legal requirements. To be a member of the class you need not take 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 Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201‑9150, Toll Free at (888) 773‑9224, by e‑mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.