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Case Status:    SETTLED
On or around 12/15/2011 (Date of order of distribution of settlement)

Filing Date: May 18, 2009

According to a press release dated May 18, 2009, the complaint alleges that, during the Class Period, Akeena, 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 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.

COMPANY INFORMATION:

Sector: Utilities
Industry: Electric Utilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: AKNS
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. California
DOCKET #: 09-CV-02147
JUDGE: Hon. James Ware
DATE FILED: 05/18/2009
CLASS PERIOD START: 12/26/2007
CLASS PERIOD END: 03/13/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Scott & Scott LLP (San Diego)
    600 B Street, Suite 1500, Scott & Scott LLP (San Diego), CA 92101
    619.233.4565 619.233.4565 · scottlaw@scott-scott.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 09-CV-02147
JUDGE: Hon. James Ware
DATE FILED: 12/11/2009
CLASS PERIOD START: 12/26/2007
CLASS PERIOD END: 03/13/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  2. Scott & Scott LLP (San Diego)
    600 B Street, Suite 1500, Scott & Scott LLP (San Diego), CA 92101
    619.233.4565 619.233.4565 · scottlaw@scott-scott.com
No Document Title Filing Date