Following a stock price decline of almost 30% an investigation on behalf of investors in shares of Evergreen Solar, Inc. (NASDAQ:ESLR) over possible violations of Federal Securities Laws was announced.

The investigation by a law firm concerns on whether the Evergreen Solar, Inc. or others have violated federal securities laws by issuing false and misleading statements to the investing public.
Evergreen Solar, Inc. reported a substantial increase in its 12months Total Revenue over the past four annual filing periods. Evergreen Solars 12months Total Revenue increased from $69.87million in 2007 to $338.79million in 2010. However, its Net Income decreased over the same time frame from a Net Loss of $16.60million to a Net Loss of $465.44million.

Shares of Evergreen Solar, Inc. fell from as High as $17.22 in 2007 to as low as $0.58 per share on December 31 2010. In January 2011 ESLR shares increased to over $2.30 per share.

Then on May, 12 2011, Evergreen Solar, Inc disclosed in a filing with the U.S. Securities and Exchange Commission (SEC), among other things, that there is uncertainty regarding the Companys ability to maintain liquidity sufficient to operate its business effectively over at least the next twelve months, which raises substantial doubt as to its ability to continue as a going concern. On May 13, 2011 Bloomberg News reported that Evergreen Solar said its survival depends on obtaining additional financing from third parties and a successful restructuring of at least a substantial portion of its debt.

Earlier this year, Evergreen Solar, Inc shut its factory in Devens, Massachusetts and dismissed about 800 workers. In 2007 Evergreen Solar, Inc received $58 million in state financing in connection with the construction of the Devens plant.

ESLR shares fell from roughly $1.4 per share on May 12 to under $1 per share during May 13 and closed Fridays trading slightly above $1 per share.