The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Axiom Holdings, Inc. (OTCMKTS: AIOM) who purchased shares between October 14, 2016 and June 19, 2017. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the complaint alleges that (i) Axiom lacked control over the merger process sufficient to ensure that the Agreement with CJC would be completed; (ii) accordingly, the Agreement with CJC Holdings, Ltd. ("CJC") was never completed; (iii) the Company’s issuance of shares to the CJC Shareholders was thus improper; and (iv) as a result of the foregoing, Axiom’s public statements were materially false and misleading at all relevant times.
On June 19, 2017, Axiom issued a press release revealing that it identified discrepancies related to prior news announcements in response to a subpoena from the Securities and Exchange Commission. The following day, the Company issued another 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 CJC Shareholders in connection with the merger.
Shareholders have until August 21, 2017 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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