LOS ANGELES, Oct. 15, 2004 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Northern District of California on behalf of a class (the "Class") consisting all persons or entities who purchased or otherwise acquired securities of AXT, Inc. ("AXT" or the "Company") (Nasdaq: AXTI) between February 6, 2001 and April 27, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges AXT and the Company's CEO with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations concerning AXT's operations and performance during the Class Period artificially inflated the Company's stock price, inflicting damages on investors. AXT manufactures semiconductor parts known as substrates for a variety of electronic products including wireless and fiber optic telecommunications, lasers, light emitting diodes and consumer electronics. The Complaint alleges defendants knew or recklessly disregarded that their statements were materially false and misleading when made because AXT: (i) did not follow requirements for testing of products (and provision of testing data and information) relating to customer requirements; and, as a consequence of this conduct, (ii) failed to accrue adequate reserves; (iii) falsely stated its reported reserves, revenue and income; and (iv) issued false statements about the Company meeting customer requirements.
On April 27, 2004, the Company disclosed that the "first quarter's financial review and verification process has been delayed due to an investigation by AXT's Audit Committee of certain product testing practices and policies." News of this investigation shocked the market, and the next day, April 28, 2004, AXT common stock dropped 13.64% on heavy trading. One day later, AXT stock plummeted even further, falling nearly 23% in one day, to close at $2.20 on April 29, 2004, on even heavier trading than the previous day.
On May 24, 2004, AXT disclosed to the SEC that the investigation confirmed that, for an undisclosed period of years, AXT had "not followed requirements for testing of products and provision of testing data and information relating to customer requirements for certain shipments made over the past several years." The Company further disclosed that during first-quarter 2004, AXT increased its reserve for sales returns "related to our failure to follow certain testing requirements and provision of testing data and information to certain customers."
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than December 14, 2004, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Lionel Z. Glancy, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.