NEW YORK, May 18, 2009 (GLOBE NEWSWIRE) -- On May 18, 2009, Scott+Scott LLP filed a class action complaint against Akeena Solar, Inc. ("Akeena" or the "Company") (Nasdaq:AKNS) and certain of the Company's officers in the U.S. District Court for the Northern District of California. The action for violations of the Securities Exchange Act of 1934 is brought on behalf of those purchasing Akeena common stock during the period beginning December 26, 2007 through March 13, 2008, inclusive (the "Class Period").
If you purchased Akeena common stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than July 17, 2009. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537 or visit the Scott+Scott website, http://www.scott-scott.com) for more information. There is no cost or fee to you.
The complaint alleges that, during the Class Period, Akeena, a designer and marketer of solar power systems, 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.
The complaint alleges the several statements made by Akeena to investors were materially false or misleading. The statements were false or misleading because, when they were made the Company knew that: (a) the previously reported backlog number was unreliable; (b) its gross profit margins were declining; (c) its net losses were dramatically increasing and (d) the $17.5 million "increase" in Akeena's credit line announced on December 26, 2007 was merely a cash collateralization agreement which simply increased the Company's restricted cash.
Scott+Scott has significant experience in prosecuting major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.