San Diego, CA -- (SBWIRE) -- 04/28/2014 -- An investor, who purchased shares of Axesstel, Inc. (OTCMKTS:AXST), filed a lawsuit in the U.S. District Court for the Southern District of California over alleged violations of Federal Securities Laws by Axesstel, Inc. in connection with certain allegedly false and misleading statements made between February 25, 2013 and March 31, 2014.
If you purchased shares of Axesstel, Inc. (OTCMKTS:AXST), you have certain options and for certain investors are short and strict deadlines running. Deadline: June 23, 2014. Axesstel investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Axesstel, Inc. (OTCMKTS:AXST) between February 25, 2013 and March 31, 2014, that Axesstel, Inc. and certain of its officers violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that the defendants between February 25, 2013 and March 31, 2014 issued allegedly false and misleading statements or failed to disclose that Axesstel, Inc. was facing issues that were negatively impacting the rollout of Axesstel’s new Home Alert product line, that 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, that Axesstel, Inc. improperly recognized revenue from the foregoing sales to the two customers in Africa, in violation of the Company’s stated revenue recognition policy, that as a result, Axesstel, Inc.’s revenue and financial results were overstated, and Axesstel, Inc. misrepresented the progress of the rollout of the new Home Alert product line, as well as the true demand for the new product line, that Axesstel, Inc.’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP), that Axesstel, Inc. lacked adequate internal and financial controls, and that as a result of the foregoing, Axesstel, Inc.’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.
Axesstel, Inc. (OTCMKTS:AXST) reported that its annual Total Revenue rose from $54.13 million in 2012 to $59.66 million in 2012 and that its Net Income increased from $1.10 million to $4.31 million. Shares of Axesstel, Inc. (OTCMKTS:AXST) grew from $0.069 per share in May 2011 to as high as $1.90 per share in early 2013.
On June 13, 2013, Axesstel, Inc. provided a company update. Among other things, Axesstel, Inc. said that it was anticipating a weak 2013 second quarter “due to slower demand in Europe, product launches in Africa that were delayed to the second quarter as a result of minor warranty issues, and a slower than expected rollout of the Company’s new products in 2013.”
Shares of Axesstel, Inc. declined from $1.90 in early 2013 to as low as $0.077 per share in October 2013
On April 25, 2014, OTCMKTS:AXST shares closed at $0.10 per share.
Those who purchased shares of Axesstel, Inc. (OTCMKTS:AXST) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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