Akeena (AKNS) Gets Slapped With Class Action Lawsuit
On Monday, one of Akeena Solar’s investors filed a class actionlawsuit against the company. The lawsuit alleges that the way AkeenaSolar disclosed information about itself violated the law, andpotential members of the class include anyone who bought stock in thecompany from December 26, 2007 through March 13, 2008. Here’s more froma press release about the lawsuit, including the deadlines, contact info, and the rationale behind it:
Deadline: July 17, 2009. You should contact the Shareholders Foundation, Inc. immediately at: Email:mail(at)shareholdersfoundation.com or call us at: +1 (858) 779 – 1554(There is no cost or fee to you). According to the complaint theplaintiff alleges that Akeena Solar, Inc and certain of its officersviolated the Securities Exchange Act of 1934 by issuing betweenDecember 26, 2007 and March 13, 2008 materially false and misleadingstatements regarding Akeena Solar’s sales, financial performance andcondition. Then Akeena Solar made a series of negative disclosures tothe market, so the lawsuit: Akeena revealed that the credit-lineincrease announced on December 26, 2007, contained a cash collateralrequirement equaling the amount of the extension. Then Akeena Solarreported that its 4Q 2007 sales had significantly missed the sales"backlog" Akeena confirmed existed at the end of its 3Q 2007. And thenon March 13, 2008, Akeena finally revealed that actual losses incurredin its 4Q 2007, which had already ended on December 31, 2007, weresignificantly higher. Its newly-appointed Chief Financial Officer alsorevealed that his predecessor had been booking as "backlog" every newinstallation contract, regardless of whether the customer intended totake delivery within six months or the status of the customer’sfinancing. As a result of these disclosures, Akeena’s common stock, which had traded as high as $16.80 on January 7, 2008, fell to $6.15 per share on March 13, 2008.
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