The Law Firm of Levi & Korsinsky, LLP Launches an Investigation into Possible Securities Laws Violations by JBI, Inc.

NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky is investigating potential claims on behalf of purchasers of JBI, Inc. (“JBI” or the “Company”) (PINK: JBII) securities concerning possible violations of federal securities laws.

For more information, click here: http://www.zlk.com/jbi-jbii.

The investigation concerns possible breaches of fiduciary duties by the Company's officers and directors in connection with the erroneous booking of media credits in violation of generally accepted accounting principles ("GAAP"). On January 4, 2012, the Securities and Exchange Commission (the “SEC”) filed a complaint alleging that JBI materially overstated certain assets in its 2009 third quarter and year-end balance sheets. Specifically, in its financials JBI listed media credits purchased by the company for $1,000,000 in common stock as having a value of $9,997,134, which made the media credits the single largest asset on JBI’s balance sheet.

The Defendants then used the overvalued financial statements in two private capital raising efforts geared toward raising the capital necessary to begin commercial operation and production of Plastic2Oil, a process designed to convert plastic waste into oil. JBI raised over $8.4 million for the company while relying on misrepresentations to investors about the company’s assets and valuation. Shortly after obtaining the approximately $8.4 million in financing, the company issued a statement indicating that its financial statements could no longer be relied upon due, in part, to the erroneous valuation of certain assets on the balance sheet. Upon this news, JBI stock plummeted from a closing price of $2.35 per share on January 3, 2012 (the day prior to the disclosure), to a close of $0.86 per share the following day.

If you own JBII stock and wish to obtain additional information about the investigation and your legal rights, please contact Joseph E. Levi, Esq. either via email at [e-mail] or by telephone at [phone], toll-free: [phone], or visit http://www.zlk.com.

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Levi & Korsinsky, LLP
Joseph Levi, Esq.
Eduard Korsinsky, Esq.
30 Broad Street - 15th Floor
New York, NY 10004
Tel: [phone]
Toll Free: [phone]
Fax: [phone]
www.zlk.com