Investor Alleges Alternative Energy Firm Inflated Value

Law360, New York (March 19, 2012, 5:15 PM EDT) -- Executives at JBI Inc., an alternative energy firm claiming to have developed a revolutionary process for converting plastic into crude oil, are facing new legal woes after being hit Friday with a shareholder lawsuit accusing them of "drastically inflating" the company’s value.

Pennsylvania investor Erwin Grampp took aim at chief executive John Bordynuik and other high-ranking company officials, alleging in Massachusetts federal court that they deliberately exaggerated the firm's financial health.

Much of the complaint focuses on JBI's acquisition of a firm in 2009, a transaction...
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