Levi & Korsinsky, a renowned securities litigation firm, has initiated an investigation into AXT, Inc. (NASDAQ:AXTI) over potential violations of federal securities laws. The probe comes in response to a report published by J Capital Research on April 4, 2024, which shed light on undisclosed issues surrounding the company’s subsidiary in China.
AXT, Inc., a U.S.-listed company, primarily conducts its business operations through its Chinese subsidiary. The company had expressed its intention to list this subsidiary in Shanghai to secure new financing. However, the listing prospectus attracted unexpected scrutiny, revealing a range of concerns in China.
The report from J Capital Research highlighted several potential reasons why Chinese regulators may have blocked the IPO. These included allegations of falsifying data, tax evasion, improper storage of hazardous chemicals, suspicious related-party transactions, intellectual property litigation, and defaulting on litigation and wages to employees.
Following the release of this news, AXT, Inc.’s share price experienced a decline of over 17% on the same day. Investors seeking additional information regarding the investigation can visit https://zlk.com/pslra-1/axt-inc-lawsuit-submission-form?prid=79163&wire=1 or contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.
Levi & Korsinsky, LLP, with its extensive expertise in representing investors in complex securities litigation, has established itself as a nationally-recognized firm over the past 20 years. The firm’s track record includes securing hundreds of millions of dollars for aggrieved shareholders and winning high-stakes cases. Levi & Korsinsky has consistently ranked among the top securities litigation firms in the United States, as recognized by ISS Securities Class Action Services’ Top 50 Report for seven consecutive years.
While the investigation into AXT, Inc. is ongoing, it is important to note that the allegations raised in the J Capital Research report have not been proven. Investors are advised to exercise caution and seek professional guidance before making any investment decisions.
Please note that this article is for informational purposes only and does not constitute legal advice or a recommendation to buy or sell any securities.