HARTFORD, Conn., Oct. 18 2004 LAWFUEL – Class action, lawsuit, law…

HARTFORD, Conn., Oct. 18 2004 LAWFUEL – Class action, lawsuit, law, legal, attorney news— The law firm of Schatz & Nobel,
P.C., which has significant experience representing investors in prosecuting
claims of securities fraud, announces that a lawsuit seeking class action
status has been filed in the United States District Court for the Northern
District of California on behalf of all persons who purchased the securities
of AXT, Inc. (NasdNM: AXTI) (“AXT”) between February 6, 2001 and April 27,
2004 (the “Class Period”).

The Complaint alleges that AXT violated securities laws by making material
misrepresentations and omissions during the Class Period. On April 27, 2004,
AXT disclosed that the “first quarter’s financial review and verification
process has been delayed due to an investigation by AXT’s Audit Committee of
certain product testing practices and policies.”

On May 24, 2004, AXT
disclosed to the SEC that the investigation confirmed that, for an undisclosed
period of years, AXT had “not followed requirements for testing of products
and provision of testing data and information relating to customer
requirements for certain shipments made over the past several years.” AXT
further disclosed that during the first-quarter of 2004, AXT increased its
reserve for sales returns “related to our failure to follow certain testing
requirements and provision of testing data and information to certain
customers.” As a result of AXT’s disclosure, the price of AXT stock fell from
a close of $3.30 per share on April 27, 2004 to close at $2.20 per share on
April 29, 2004.

If you are a member of the class, you may, no later than December 14,
2004, request that the Court appoint you as lead plaintiff of the class. A
lead plaintiff is a class member that acts on behalf of other class members in
directing the litigation. Although your ability to share in any recovery is
not affected by the decision whether or not to seek appointment as a lead
plaintiff, lead plaintiffs make important decisions which could affect the
overall recovery for class members, including decisions concerning settlement.
The securities laws require the Court to consider the class member(s) with the
largest financial interest as presumptively the most adequate lead
plaintiff(s).

For more information about the case, its claims, and your rights, please
contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at
[email protected] To view a copy of the lawsuit initiating the class action,
or for more information about class action cases and Schatz & Nobel, please
visit our website: http://www.snlaw.net.

CONTACT:
Wayne T. Boulton or Nancy Kulesa
Tel.: (800) 797-5499
Website: http://www.snlaw.net
e-mail: [email protected]

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