Robbins Umeda LLP Announces Investigation of Akeena Solar, Inc.
04 June 2010 - 10:20AM
Business Wire
Robbins Umeda LLP has commenced an investigation into possible
breaches of fiduciary duty and other violations of the law by
certain officers and directors at Akeena Solar, Inc. ("Akeena
Solar" or the "Company") (NASDAQ:AKNS). Akeena Solar engages in the
design, integration, installation, marketing, and sale of solar
power systems. The Company was founded in 2001 and is headquartered
in Los Gatos, California.
Robbins Umeda LLP's investigation concerns whether the Company's
directors and officers caused the Company to make materially false
and misleading representations regarding Akeena Solar's business
fundamentals and finances. Specifically, Robbins Umeda LLP is
investigating whether the Company's fiduciaries caused Akeena Solar
to mislead investors by failing to disclose that the Company was
experiencing severe gross profit margin losses as a result of its
failure to meet previously-set sales "backlogs."
Further, in December 2007, Akeena Solar announced that its
existing credit line was increased from $7.5 million to $25
million. The increase was believed to be a vote of confidence in
the Company, and upon news of the increase, the Company's stock
price rose approximately 20%. A year later, however, Akeena Solar
revealed that the increase in its line of credit was not an
increase at all, but a mere cash collateralization agreement
whereby Akeena Solar agreed to maintain a cash deposit of the same
amount.
The Company then reported that its fourth quarter 2007 sales had
significantly missed the sales "backlog" that Akeena Solar
confirmed existed at the end of its third quarter 2007 by more than
20%. Upon Akeena Solar's disclosure that it significantly missed
its previously-reported backlog sales and was lowering its fiscal
2008 annual growth sales by more than 25%, the Company's stock
price plummeted, erasing tens of millions of dollars in market
capitalization.
If you purchased your shares of Akeena Solar stock prior to
December 26, 2007, continue to hold your shares, and would like
more information about your rights as a shareholder, please contact
attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at
inquiry@robbinsumeda.com.
Robbins Umeda LLP is a California-based law firm, which has
significant experience representing investors in shareholder
derivative actions, securities fraud class actions, and
merger-related shareholder class actions. For more information
about the firm, please go to http://www.robbinsumeda.com.
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