NEW YORK, Sept. 15, 2011 (GLOBE NEWSWIRE) -- JBI, Inc. (OTCBB:JBII). A class action lawsuit has been filed in the United States District Court for the District of Nevada on behalf of all purchasers of JBI common stock from August 28, 2009 to July 20, 2011 (the proposed "Class Period"). The complaint alleges that the Massachusetts-based company, which provides data restoration and recovery services, failed to timely disclose that the media credits acquired by the company in connection with acquisitions made in 2009 were materially overvalued and improperly accounted for; that the company lacked adequate internal and financial controls; and 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 in a Securities and Exchange Commission ("SEC") Form 8-K filing that its financial statements for fiscal year and third quarter 2009 should no longer be relied upon due to the accounting treatment and related disclosures of two acquisitions completed in 2009, and due to the inflated valuation of media credits acquired by JBI through the issuance of common stock.
Upon this news, JBI shares fell 47% to close at $1.60 per share on the next trading day on May 24, 2010.
On July 20, 2011, JBI disclosed that the SEC had issued a "Wells Notice" to JBI, indicating that it may file a civil lawsuit against JBI and one or more current and former JBI officers for federal securities laws violations relating to the company's restated financial statements for the 2009 fiscal year and third quarter.
Upon this news, shares fell 23.66% to close at $2 per share on July 21, 2011.
If you purchased JBI common stock during the Class Period, you may file a motion with the Court no later than September 26, 2011, and request that the Court appoint you as lead plaintiff.
A lead plaintiff is a Court-appointed representative party that directs the litigation, with the largest financial interest in the litigation, claims typical of other class members, and the ability to adequately represent the class. Your share in any recovery will not be enhanced by serving as a lead plaintiff. You do not need to be a lead plaintiff to recover; you can recover as an absent class member. You may retain Milberg LLP, or other attorneys, but do not need to retain counsel to recover as an absent class member. The complaint discussed herein was not filed by Milberg.
Founded in 1965, Milberg has offices in New York, Los Angeles, Tampa, and Detroit. Milberg has litigated landmark cases and recovered billions for shareholders and consumers. The Milberg website (www.milberg.com) has additional information.
You may contact the following attorney for more information:
Andrei V. Rado, Esq.
Milberg LLP
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email: contactus@milberg.com
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