Robbins LLP is Investigating the Allegations that AXT, Inc. (AXTI) Misled Investors Regarding its Business Operations
Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired AXT, Inc. (NASDAQ: AXTI) securities between March 24, 2021 and April 3, 2024. AXT, Inc. describes itself as a “worldwide materials science company that develops and produces high-performance compound and single element semiconductor substrates, also known as wafers.”
The Allegations
According to the complaint, during the class period, defendants failed to disclose that: (1) AXT, Inc. overstated its property holdings; (2) the Company did not disclose that the attempted listing of an AXT, Inc. subsidiary in China had reportedly failed; (3) AXT, Inc. routinely engaged in environmental violations and unsafe business practices; and (4) AXT, Inc.’s production declined in 2023.
Plaintiff alleges that on April 4, 2024, J Capital Research issued a report noting problems with AXT, Inc. in China, where the Company has nearly all of its operations. Specifically, the report explains that “AXTI sales have crashed, production plummeted, and environmental problems forced the company to move hazardous chemical operations to a rural county 300 miles from the factory,” among other things. Upon release of this report, the price of AXT, Inc. stock fell $1.73 per share, or 34.94%, to close at $3.22 per share on April 4, 2024.
What Now: You may be eligible to participate in the class action against AXT, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by July 5, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.