On Monday, one of Akeena Solar’s investors filed a class action lawsuit against the company. The lawsuit alleges that the way Akeena Solar disclosed information about itself violated the law, and potential members of the class include anyone who bought stock in the company from December 26, 2007 through March 13, 2008. Here’s more from a 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 the plaintiff alleges that Akeena Solar, Inc and certain of its officers violated the Securities Exchange Act of 1934 by issuing between December 26, 2007 and March 13, 2008 materially false and misleading statements regarding Akeena Solar’s sales, financial performance and condition. Then Akeena Solar made a series of negative disclosures to the market, so the lawsuit: Akeena revealed that the credit-line increase announced on December 26, 2007, contained a cash collateral requirement equaling the amount of the extension. Then Akeena Solar reported that its 4Q 2007 sales had significantly missed the sales "backlog" Akeena confirmed existed at the end of its 3Q 2007. And then 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. 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 or the status of the customer’s financing. 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.