According to a press release dated May 18, 2009, the Complaint alleges that, during the Class Period, Akeena Solar, Inc., a designer and marketer of solar power systems, 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.

The Complaint alleges the several statements made by Akeena to investors were materially false or misleading. The statements were false or misleading because when they were made, the Company knew that: (a) the previously reported backlog number was unreliable; (b) its gross profit margins were declining; (c) its net losses were dramatically increasing and (d) the $17.5 million "increase" in Akeena's credit line announced on December 26, 2007 was merely a cash collateralization agreement which simply increased the Company's restricted cash.

On October 21, 2009, the Court granted Plaintiff Hodges’ motion to appoint lead Plaintiff and lead Counsel. The Court appointed Plaintiffs Sharon Hodges, Joel Gentleman, and David H. Gordon as co-lead Plaintiffs and Scott+Scott as lead Counsel. The Court denied Movant John Wotring’s motion to appoint lead Plaintiff and lead Counsel.

On December 11, 2009, an Amended Complaint for Violations of the Federal Securities Laws was filed with the Court.

On May 20, 2010, an Order Denying Defendants Motion To Dismiss was issued by the Court.

The parties entered into a Stipulation of Settlement on August 24, 2011. The Court granted preliminary approval of the Settlement on September 15. On December 15, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On March 11, 2013, the Court granted Plaintiffs' Motion for Distribution of the Settlement fund.