Key Developments For STEC, Inc.
STEC, Inc. (STEC.O) (Nasdaq)
Weiss & Lurie Files Class Action Lawsuit Against STEC, Inc.
Weiss & Lurie announced that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of purchasers of STEC, Inc. securities from June 16, 2009 through November 3, 2009 (Class Period). The complaint alleges that the defendants, who are STEC and certain of the Company's officers, violated the Securities and Exchange Act of 1934 by issuing materially false and misleading statements regarding the Company, its financial condition, customers, products, competitive position and prospects. Specifically, the complaint alleges that defendants represented that STEC, Inc. had no competitors for certain of its solid state disk drive products (SSDs), and anticipated increases in the sales of its SSD products and continued profitability despite a worldwide downturn in the disk drive market. As a result of defendants' allegedly false and misleading statements, STEC, Inc. stock traded at artificially inflated prices during the Class Period, reaching a Class Period high of $41.84 per share on September 10, 2009. During the Class Period, defendants Manouch Moshayedi and Mark Moshayedi sold 9 million shares of their personal holdings of STEC, Inc. stock in a public secondary stock offering for proceeds of approximately $268 million.
Law Offices Of Howard G. Smith Announces Class Action Lawsuit Against STEC, Inc.
Law Offices of Howard G. Smith, representing investors of STEC, Inc., announced a class action lawsuit in United States District Court on behalf of a class (the Class) consisting of all persons or entities who purchased the securities of STEC between June 16, 2009 and November 3, 2009, inclusive (the Class Period). The class action lawsuit was filed in the United States District Court for the Central District of California. The Complaint charges STEC and certain of the Company's executive officers with violations of federal securities laws. STEC designs, manufactures and markets enterprise-class solid-state drives for use in high performance storage and server systems, and high-density dynamic random access memory modules for networking, communications and industrial applications. The Complaint alleges that defendants knew or recklessly disregarded that their public statements concerning STEC's business, operations and prospects were materially false and misleading. Specifically, throughout the Class Period the defendants misrepresented and/or failed to disclose that: the Company oversold its largest customer more inventory than it required; as such, the Company overstated the demand for its ZeusIOPS SSD products; the Company's subsequent revenue and financial results for the following year would be negatively impacted; and as a result of the above, defendants' statements during the Class Period lacked a reasonable basis.
Brower Piven Announces Class Action Lawsuit Against STEC, Inc.
Brower Piven, A Professional Corporation announced that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of purchasers of the common stock of STEC, Inc. during the period between June 16, 2009 and November 3, 2009, inclusive. The complaint accuses the defendants of violations of the Securities Act of 1933 by virtue of misleading statement to investors in its offering documents for its secondary offering of Company stock to investors on or about August 6, 2009 and the Securities Exchange Act of 1934 by falsely stating during the Class Period that STEC's purported success was the result of the successful adaptation and use of STEC's ZeusIOPS products by EMC, IBM, or Sun Microsystems, when, in fact, IBM and Sun Microsystems were having significant difficulties integrating STEC's products, and by virtue of STEC failure to disclose during the Class Period that STEC over sold its largest customer, ECM, more inventory than it required and thus overstated the demand for its ZeusIOPS SSD products such that STEC's subsequent revenue and financial results for the following year would be materially negatively impacted. According to the complaint, on November 3, 2009, after STEC shocked investors when it announced that ECM's $120 million order for the second half of 2009 would carry ECM's 2009 inventory needs into 2010, thus placing STEC's 2010 first quarter results at risk, STEC's stock declined significantly.
Abbey Spanier Rodd & Abrams, LLP Files Class Action Lawsuit Against STEC, Inc.
Abbey Spanier Rodd & Abrams, LLP announced that it has commenced a Class Action lawsuit in the United States District Court for the Central District of California (Case No. SACV 09-1315 CJC) on behalf of a class (Class) of all persons who purchased or acquired securities of STEC, Inc. between June 16, 2009 and November 3, 2009 inclusive (Class Period). STEC provides technology solutions and manufactures high performance memory and storage products used in high performance computing. The Complaint alleges that Defendants violated the federal securities laws by issuing a series of false and misleading statements during the Class Period thereby artificially inflating the price of STEC securities. More specifically, the Complaint alleges that Defendants misrepresented and failed to disclose (i) that STEC over sold its 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. The fraudulent statements made by Defendants during the Class Period artificially inflated STEC's stock price, which enabled Defendants Manouch Moshayedi and Mark Moshayedi to sell 9 million of their personal shares for proceeds of approximately $300 million in a secondary public offering held on August 5, 2009.
Saxena White P.A. Filed Securities Fraud Class Action Against STEC, Inc.
Saxena White P.A. announced that it has filed suit on behalf of shareholders of STEC, Inc. The complaint was filed in the United States District Court for the Central District of California. The current class period seeks damages for violations of federal securities laws on behalf of all investors who purchased the Company common stock between June 16, 2009 and November 3, 2009, inclusive (the class period). The Company provides technology solutions and manufactures high performance memory and storage products used in high performance computing.
