An investor in Akeena Solar, Inc. (Public, NASDAQ:AKNS) shares filed a lawsuit on behalf of those who purchased the common stock of Akeena Solar, Inc. (NASDAQ: AKNS) between December 26, 2007 and March 13, 2008, alleging violations of Federal Securities Laws. Meanwhile an investigation on behalf of current long term investors in Akeena Solar, Inc. (NASDAQ: AKNS) was announced.

Akeena Solar, Inc., located in Los Gastos, California, is a designer, integrator and installer of solar power systems, and a designer of solar panels with integrated microinverters (also referred as AC solar panels).Akeena Solar reported in 2007 Total Revenue of $32.21million, in 2008 $40.76million, and in 2009 $28.21million. According to the complaint filed in the U.S. District Court for the Northern District of California 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 Solars sales, financial performance and condition. Akeena Solar made a series of negative disclosures to the market, so the lawsuit.

According to the investigation by a law firm the investigation in behalf of current long term Akeena investors concerns whether certain of Akeena Solars directors and officers caused Akeena Solar to make materially false and misleading representations regarding Akeena Solar's business fundamentals and finances. Specifically, the law firm 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.' In December 2007 Akeena Solar announced that the credit-line increase, 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. Shares of Akeena Solar, Inc. (Public, NASDAQ:AKNS) traded recently at $0.822 per share, down from its 52weekHigh of $1.98 per share, and $15 per share in 2008.