NEW YORK, May 22, 2009 LawFuel.com – Legal Newswire — The Brualdi Law Firm, P.C.
announces that a lawsuit has been commenced in the United States
District Court for the Northern District of California on behalf of
purchasers of Akeena Solar, Inc. (“Akeena” or the “Company”)
(Nasdaq:AKNS) publicly traded securities during the period between
December 26, 2007 through March 13, 2008 (the “Class Period”) for
violations of the federal security laws.
No class has yet been certified in the above action. Until a class is
certified, you are not represented by counsel unless you retain one. If
you purchased Akeena common stock during the Class Period, and wish to
move the court for appointment of lead plaintiff, you must do so by
July 17, 2009. A lead plaintiff is a representative party acting on
behalf of other class members in directing the litigation. The lead
plaintiff will be selected from among applicants claiming the largest
loss from investment in the Company during the Class Period. You do not
need to seek appointment as a lead plaintiff in order to share in any
recovery.
To be a member of the class you need not take any action at this time,
and you may retain counsel of your choice. If you wish to discuss this
action or have any questions concerning this Notice or your rights or
interests with respect to these matters, please contact Sue Lee at The
Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York
10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by
email to slee@brualdilawfirm.com or visit our website at
http://www.brualdilawfirm.com.
The complaint alleges that, during the Class Period, Akeena made
materially false and misleading statements regarding the Company’s
sales, financial performance and condition. After repeated glowing
announcements by Akeena to its investors touting the strength of demand
for the Company’s products, its large sales “backlog” and transparency
into its financial projections and reporting, the Company surprised the
market in a series of negative disclosures beginning on January 16,
2008. First, Akeena revealed that the credit-line increase announced on
December 26, 2007, touted as a vote of confidence in the Company,
actually contained a cash collateral requirement equaling the amount of
the extension. The Company then reported that its 4Q 2007 sales had
significantly missed the sales “backlog” Akeena confirmed existed at
the end of its 3Q 2007. At the end of the Class Period, on March 13,
2008, Akeena finally revealed that actual losses incurred in its 4Q
2007, which had already ended on December 31, 2007, were significantly
higher than investors had been led to expect. Its newly appointed Chief
Financial Officer also revealed that his predecessor had been booking
as “backlog” every new installation contract, regardless of whether the
customer intended to take delivery within six months (as Akeena’s
“backlog” had previously been defined) or the status of the customer’s
financing.
As the market reacted to these disclosures, Akeena’s common stock,
which had traded as high as $16.80 on January 7, 2008, fell
precipitously, closing at $6.15 per share on March 13, 2008.
