JBI, Inc. (PINK:JBII) has been rolling downhill over the course of six consecutive sessions. The company’s stock value plummeted down from $1.80 to $1.34 over this period.
In the last session though, JBII rallied after a 14% increase in the share value. Trading volume in the last two days was also higher than usual.
The company experienced a steep downfall after a remainder popped up on the OTC Markets bulletin board last week.
Several press releases issued by certain law firms appealed to investors who had held shares of the company between Aug 2009 and July 2011 that September 26 was the lead plaintiff deadline in the shareholder lawsuit against JBII.[BANNER]
JBII faces several charges for violations of federal securities laws. Some of the allegations against JBII include:
- Improperly accounting for acquisitions.
- Preparing financial reports without taking in consideration the general accepted accounting principles.
- Making inadequate internal and financial control.
Apparently, the looming lawsuit has been exerting a negative effect on JBII stock value in the last couple of days.
It is not clear how long the depreciation will continue. Technical indicators does not give a clear sign of where the stock is heading next. Nevertheless, the market is certainly waiting for the result of the lawsuit and perhaps a major reaction will follow after the court pronounces its decision.
