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Case Status:    SETTLED
On or around 04/21/2016 (Date of order of distribution of settlement)

Filing Date: April 24, 2014

According to the law firm press release, Axesstel provides wireless voice, broadband access and connected home solutions for the telecommunications market worldwide. The Complaint alleges that throughout the Class Period defendants issued false and misleading statements or failed to disclose that: (1) the Company was facing issues that were negatively impacting the rollout of Axesstel’s new Home Alert product line; (2) certain aspects of sales to two customers in Africa in the first quarter of 2013, including payment terms and market allowances, were not finalized by the end of the quarter; (3) the Company improperly recognized revenue from the foregoing sales to the two customers in Africa, in violation of the Company’s stated revenue recognition policy; (4) as a result, the Company’s revenue and financial results were overstated, and the Company misrepresented the progress of the rollout of the new Home Alert product line, as well as the true demand for the new product line; (5) the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (6) the Company lacked adequate internal and financial controls; and (7) as a result of the foregoing, the Company’s financial statements and other statements about Axesstel’s business, operations, and prospects were materially false and misleading at all relevant times and/or lacked a reasonable basis.

On July 22, 2014, the Court issued an Order appointing lead plaintiff and approving lead counsel. Lead plaintiff filed an amended complaint on September 22.

On June 8, 2015, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on June 19. The Settlement was granted final approval on October 23, and this case was dismissed.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: AXST
Company Market: OTC-BB
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: S.D. California
DOCKET #: 14-CV-01037
JUDGE: Hon. Cathy Ann Bencivengo
DATE FILED: 04/24/2014
CLASS PERIOD START: 02/25/2013
CLASS PERIOD END: 03/31/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Law Offices of Howard G. Smith
    3070 Bristol Pike, Suite 112, Law Offices of Howard G. Smith, PA 19020
    215.638.4847 215.638.4867 ·
No Document Title Filing Date
COURT: S.D. California
DOCKET #: 14-CV-01037
JUDGE: Hon. Cathy Ann Bencivengo
DATE FILED: 09/22/2014
CLASS PERIOD START: 02/28/2013
CLASS PERIOD END: 10/17/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
No Document Title Filing Date