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 firstname.lastname@example.org. 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. Advertisement