NEW YORK, May 22, 2009 (GLOBE 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.