WEST HARTFORD, CT, Nov 09 (MARKET WIRE) --
The law firm of Izard Nobel LLP, 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 Central District of California
on behalf of those who purchased the common stock of STEC, Inc. ("STEC"
or the "Company") (NYSE: STEC) between June 16, 2009 and November 3, 2009
(the "Class Period"). Also included are those who purchased in the August
6, 2009 Secondary Offering.
The Complaint charges that STEC and certain of the Company's executive
officers violated federal securities laws. Specifically, the defendants
made false and/or misleading statements and/or failed to disclose: (i)
that STEC over sold its largest customer more inventory than it required;
(ii) the Company overstated the demand for certain products; (iii) that
STEC's subsequent revenue and financial results for the following year
would be negatively impacted; and (iv) that, as a result, Defendants'
statements during the Class Period lacked a reasonable basis.
On November 3, 2009, STEC announced that one of its largest customers,
which accounts for 90 percent of STEC's ZeusIOPS SSD business and which
had placed a $120 million order for the second half of 2009, would carry
2009 inventory into 2010, placing STEC's 2010 first quarter results at
risk. On this news, shares of STEC fell $9.01 per share, more than 38%,
to close on November 4, 2009, at $14.14 per share.
If you are a member of the class, you may, no later than January 5, 2010,
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.
While Izard Nobel LLP has not filed a lawsuit against the defendants, to
view a copy of the Complaint initiating the class action or for more
information about the case, and your rights, visit:
www.izardnobel.com/stec/, or contact Izard Nobel LLP toll-free: (800)
797-5499, or by e-mail: firm@izardnobel.com. For more information about
class action cases in general, please visit our website:
www.izardnobel.com.
CONTACT:
Nancy A. Kulesa or Wayne Boulton
(800) 797-5499
www.izardnobel.com
Email Contact
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