AXT, Inc. (NasdaqGS: AXTI)

Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into AXT, Inc. (NasdaqGS: AXTI).  

On April 4, 2024, J Capital Research released a report on the Company, revealing that it  had tried to conduct an Initial Public Offering (“IPO”) for one of its subsidiaries in China and that the “IPO has apparently been blocked by Chinese regulators.” J Capital also disclosed 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.”

Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, alleging that the defendants made materially false and/or misleading statements and/or failed to disclose that: (1) AXT, Inc. overstated its property holdings; (2) AXT, Inc. did not disclose that the attempted listing of an AXT, Inc. subsidiary in China had reportedly failed; (3) AXT, Inc. routinely engaged in environmental violations and unsafe business practices; (4) AXT’s production declined in 2023; and (5) as a result, defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all times.

KSF’s investigation is focusing on whether AXT’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.  If you have information that would assist KSF in its investigation, or have been a long-term holder of AXT shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or fill out the form on this page.