Dallas-based law firm Goldfarb Branham says it is investigating certain officers and directors at Akeena Solar Inc. for shareholders of the company because of allegedly false and misleading statements made about Akeena's financial condition.
According to a class-action complaint filed against the company, Akeena Solar concealed for a year that a purported increase in a credit line from $7.5 million to $25 million was a mere cash collateralization agreement whereby Akeena Solar agreed to maintain a cash deposit of the same amount.
Akeena then reported it had significantly missed the sales backlog by more than 20%. When the truth emerged, Akeena's stock price plummeted, erasing tens of millions of dollars in market capitalization, according to Goldfarm Branham.
Goldfarb Branham is investigating a derivative lawsuit against company executives for allowing this scheme to occur. Derivative lawsuits often lead to restored confidence in companies involved in financial scandal and a resulting increase in shareholder value, the law firm says.
SOURCE: Goldfarb Branham LLP
