Axesstel, Inc. Securities Litigation
HomeCase DocumentsContact UsFile Claim

Welcome to the Axesstel, Inc. Securities Litigation Website

This website has been established to provide general information regarding the Axesstel, Inc. Securities Litigation. The capitalized terms used on this website and not defined herein shall have the same meanings ascribed to them in the Stipulation of Settlement dated June 8, 2015.

Patel v. Axesstel, Inc. et al., Civil Action No. 3:14-cv-01037-CAB-BGS (the "Litigation") is currently pending before District Judge Cathy Ann Bencivengo in the United States District Court for the Southern District of California (the "Court"). Axesstel, Inc. ("Axesstel" or the "Company"), H. Clark Hickock, and Patrick Gray are called the Defendants. Amish Patel is called the Lead Plaintiff.

The Settlement Class is defined as all persons and/or entities other than Defendants who purchased Axesstel securities between February 28, 2013, and October 17, 2013.

This Litigation alleges violations of the federal securities laws (specifically, Section 10(b) and 20(a) of the Securities Act of 1934) against Defendants.

Axesstel is Nevada corporation that trades on the OTC Markets Group (OTCQB), with its principal executive offices located at 16815 Flanders Drive, Suite 210, San Diego, California 92121. The Company provides wireless voice, broadband access, and connected home solutions for the telecommunications market worldwide.

Plaintiffs allege that, during the Settlement Class Period, Axesstel’s stock price was artificially inflated as a result of a series of untrue or materially misleading misrepresentations and omissions concerning Axesstel’s financial condition. Defendants deny that they made any such misleading statements and further deny that Axesstel’s stock price was artificially inflated as a result of any statements.

The Court did not decide in favor of Plaintiffs or Defendants. Instead, both sides agreed to a Settlement. This permits them to avoid the cost and uncertainty of a trial, and permits eligible Settlement Class Members who submit valid claims to receive compensation. Plaintiffs and their attorneys believe the Settlement is best for all Settlement Class Members. Defendants have concluded that further defense of the Litigation would be protracted and expensive, and that it is desirable that the Litigation be fully and finally settled in the manner and upon the terms and conditions set forth in the Stipulation of Settlement. Defendants also have taken into account the uncertainty and risks inherent in any litigation, especially in complex cases such as the Litigation.

The Settlement will result in a Settlement Fund of $1.25 million in cash. The balance of this Fund, after payment of Court-approved attorneys’ fees and the costs of claims administration, including the costs of printing and mailing this Notice and the cost of publishing the newspaper notice (the “Net Settlement Fund”), will be divided among all eligible Settlement Class Members who send in valid Proof of Claim forms.

The Court appointed the law firm of Glancy Prongay & Murray LLP to represent Settlement Class Members. These lawyers are called Plaintiffs’ Lead Counsel.

Although the information in this website is intended to assist you, it does not replace the information contained in the Notice of Proposed Settlement of Class Action, Motion for Attorneys’ Fees and Settlement Hearing and Stipulation of Settlement, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

SUBMIT A CLAIM The only way to get a payment.
OBJECT You may write to the Court if you do not like this Settlement.
EXCLUDE YOURSELF Receive no payment. This is the only option that allows you to participate in another lawsuit against the Defendants relating to the Settlement Class claims being released in this case.
GO TO A HEARING You may ask to speak in Court about the fairness of the Settlement.
DO NOTHING Receive no Payment

DEADLINES

Submit Claim: October 19, 2015
File Objection: September 24, 2015
Request Exclusion: September 24, 2015
Court Hearing on Fairness of Settlement: October 15, 2015 2:00 p.m.