Axiom Should Pay $1.4 Million Default in Fraud Suit, Judge Says

May 11, 2022, 7:42 PM UTC

Axiom Holdings Inc. should pay a $1.42 million default judgment in a class suit by shareholders who alleged its misrepresentations about a merger caused a stock drop, a federal magistrate in New York recommended.

Ashley Desvarieux sued in 2017 alleging Axiom violated Section 10(b) of the Exchange Act when it made material misrepresentations regarding a merger with CJC Holdings Ltd., a Hong Kong corporation whose subsidiaries operate hydroelectric power stations in China. The merger fell through, resulting in a fall in Axiom’s stock price and losses to its shareholders.

Axiom didn’t respond to the complaint and didn’t appear at a ...

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