Plastic2Oil Inc (PTOI)

[loanranger]

MLM,
The original Articles and By-laws of the corporation, from 2006, are linked. I have not checked to see if any relevant sections have been amended.
http://sec.gov/Archives/edgar/data/1381105/000031336806000215/0000313368-06-000215-index.htm

The pertinent sections indicate, as is typical, that directors and officers are indemnified against certain costs arising from certain of their acts when acting on behalf of the corporation. In theory, and almost certainly in practice because it is essentially a contractual obligation, insurance is secured by the company to support that indemnification. Obviously I can only assume that JBI has such insurance.
I BELIEVE that any settlement of a class action suit would look to that insurance for funding. Again obviously, the size of the settlement relative to the amount of existing coverage would determine whether other sources of funding would be required in order to satisfy it.

This issue can become far more complicated when an SEC complaint is also filed, as has been suggested here by the Wells Notice.


All just my opinion.