The SEC's decision to sue JBI and Bordynuik on multiple counts of fraud, and the facts the SEC have so far released to the public, have created a sense of urgency amongst litigators, as a tsunami of lawsuits are certain to be on their way. Class action litigators want to get their chance before JBI gets financially demolished.
The SEC's information, for example, suggests that some PIPE might want to sue JBI and Bordynuik for having been lied to about the media credits, which were used to artificially Juice up the value of JBI as a means to defraud investors into valuing JBI more than the company was actually worth.
The first round of litigation lawyers emerged after the Wells Notice, but prior to the SEC's decision to sue. Once the SEC decided to litigate, it gave litigation lawyers the confidence that JBI and Bordynuik are almost certainly frauds and hence easy to demolish in court. But now the clock is ticking because every substantial investor is thinking the same thing.
I imagine that as a result of the SEC's decision to sue, the law firms are jockeying for position, each trying to get the best lead plaintiff and largest number of plaintiffs, so things favor their role if all the class action lawsuits get consolidated in court. Hence the second wave of announcements by the some law firms, and the emergence of a slew of new ones wanting to get into the game.
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