Chip Part Maker AXT Beats Investor Suit Over China IPO for Now

AXT Inc. defeated investor allegations its Beijing subsidiary concealed using a competitor’s trade secrets, preventing its listing on the Chinese stock market, a federal judge ruled.

Investors’ amended complaint failed to point to an adequate source for that accusation—originally published by a short seller—to carry securities fraud claims, said Judge Maxine M. Chesney in tossing the lawsuit. The US District Court for the Northern District of California judge is letting Charles Grubb and Craig Nowakowski file another amended complaint on or by June 27. NASDAQ-listed AXT said while announcing financial results on May 1 that Beijing Tongmei Xtal Technology Co. ...