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.