STEVENSON, Md., April 25, 2014 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of California on behalf of purchasers of Axesstel, Inc. ("Axesstel" or the "Company") (Other OTC:AXST) securities during the period between February 25, 2013 and March 31, 2014, inclusive (the "Class Period").
If you have suffered a loss from investment in Axesstel securities purchased on or after February 25, 2013 and held through the revelation of negative information during and/or at the end of the Class Period, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or financial obligation, click here: http://www.browerpiven.com/securitiesfraudcases.html.
You may also request more information by contacting Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616. Attorneys at Brower Piven together have more than a century of experience litigating securities and other class action cases.
No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than June 23, 2014 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company units during the Class Period.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants' failure to disclose during the Class Period 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.
If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.