SOURCE: Brower Piven, A Professional Corporation

August 19, 2011 15:45 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in JBI, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the September 26, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - Aug 19, 2011) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the District of Nevada on behalf of purchasers of the common stock of ("JBI, Inc." or the "Company") (PINKSHEETS: JBII) during the period between August 28, 2009 and July 20, 2011, inclusive (the "Class Period").

If you have suffered a net loss for all transactions in JBI, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years.

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than September 26, 2011 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that the media credits acquired by the Company in connection with the acquisition of JavaCo were substantially overvalued; that the Company was improperly accounting for acquisitions; that, as such, the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; and that, as a result of the above, the Company's financial statements were materially false and misleading. According to the complaint, after, 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, and after, 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, that the SEC staff may also recommend naming one or more current and former officers of JBI as defendants, and that JBI believed that the proposed lawsuit related to the Company's restated financial statements for the 2009 fiscal year and third quarter, the value of JBI stock declined significantly.

If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact