Axesstel, Executives Can’t Shake Would-Be Class Action Over Accounting

A Nevada corporation providing wireless and broadband products, and its former executives failed to shake off a would-be class action alleging that they improperly recognized and reported revenue (Patel v. Axesstel, Inc., 2015 BL 39120, S.D. Cal., 3:14-CV-1037-CAB-BGS, opinion filed 2/13/15).

Judge Cathy Ann Bencivengo of the U.S. District Court for the Southern District of California rejected on Feb. 13 Axesstel Inc.'s bid to dismiss, finding that lead plaintiff Amish Patel’s amended class complaint sufficiently alleged scienter.

The court recounted that Axesstell is a fairly small company, with a total of 35 full-time employees at the end ...