NEW YORK, June 29, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Axiom Holdings, Inc. ("Axiom" or the "Company") (OTCQB:AIOM) of the August 21, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Axiom stock or options between October 14, 2016 and June 19, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/AIOM. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Axiom securities between October 14, 2016 and June 19, 2017 (the "Class Period"). The case, Desvarieux v. Axiom Holdings, Inc. et al, Docket No. 1:17-cv-04756 was filed on June 22, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws. The complaint alleges that defendants during the Class Period made false and misleading statements and/or failed to disclose that Axiom lacked control over the merger process sufficient to ensure the validity of its December 2016 Share Exchange Agreement (the "SEA") with CJC Holdings Ltd ("CJC").
Specifically, on June 19, 2017, Axiom issued a press release disclosing that it had identified discrepancies related to prior news announcements in response to a subpoena from the Securities and Exchange Commission regarding the SEA. The following day, Axiom issued a second press release, advising investors that "it now appears the merger was never completed" and advising investors that it would rescind the shares that were issued to the CJC shareholders in connection with the merger. The Company revealed that CJC's Chief Executive Officer ("CEO") Nankamalu, who signed the SEA on behalf of CJC, had in fact already resigned as CEO a month prior to the signing and the merger was not completed.
After the announcement, Axiom's share price fell from $0.90 per share on June 19, 2017 to a closing price of $0.72 on June 20, 2017—a $0.18 or a 20% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Axiom's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE Faruqi & Faruqi, LLP