A securities class action has been filed against AXT, Inc. (AXTI) on behalf of purchasers of the securities of AXT between March 24, 2021 through April 3, 2024. This case has been filed in the USDC – E.D.N.Y.
On April 4, 2024, J Capital Research released a report about AXT, Inc. (the “Report”). The Report stated in order to capture new financing, AXT had tried to conduct an Initial Public Offering (“IPO”) for one of its subsidiaries in China. However, undisclosed to American investors, the Report stated the “IPO has apparently been blocked by Chinese regulators.” J Capital Research then announced that it had “uncovered a deluge of reasons why Chinese regulators potentially blocked this IPO, including falsifying data, tax evasion, improper storage of hazardous chemicals, suspicious related-party transactions, IP litigation, and defaulting on wages to employees.”
On this news, AXT’s stock fell $1.73 per share, or 35%, to close at $3.22 per share on April 4, 2024. The next day, AXT’s stock fell $0.11, or 3.4%, to close at $3.11 per share on April 5, 2024.