Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased STEC, Inc., Announces Class Action Lawsuit & Seeks to Reco...
November 06 2009 - 7:32PM
Business Wire
Notice is hereby given that Glancy Binkow & Goldberg LLP has
filed a class action lawsuit in the United States District Court
for the Central District of California on behalf of a class
consisting of all persons or entities who purchased the securities
of STEC, Inc. (“STEC” or the “Company”) (NASDAQ:STEC) between
August 3, 2009 and November 3, 2009, inclusive (the “Class
Period”).
A copy of the Complaint is available from the court or from
Glancy Binkow & Goldberg LLP. Please contact us by phone to
discuss this action or to obtain a copy of the Complaint at (310)
201-9150 or Toll Free at (888) 773-9224, by email at
info@glancylaw.com, or visit our website at
http://www.glancylaw.com.
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 throughout the Class Period defendants knew or recklessly
disregarded that their public statements concerning STEC’s
business, operations and prospects were materially false and
misleading. Specifically, the defendants made false and/or
misleading statements and/or failed to disclose: (1) that the
Company over sold its largest customer more inventory than it
required; (2) that, as such, the Company overstated the demand for
its ZeusIOPS SSD products; (3) that the Company's subsequent
revenue and financial results for the following year would be
negatively impacted; and (4) that, as a result of the above,
Defendants' statements during the Class Period lacked a reasonable
basis.
On November 3, 2009, STEC shocked investors when it 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. As a
result of this news, shares of STEC declined $9.01 per share, more
than 38%, to close on November 4, 2009, at $14.14 per share, on
unusually heavy volume.
Plaintiff seeks to recover damages on behalf of class members
and is represented by Glancy Binkow & Goldberg LLP, a law firm
with significant experience in prosecuting class actions, and
substantial expertise in actions involving corporate fraud.
If you are a member of the class described above, you may move
the Court, no later than 60 days from the date of this Notice, to
serve as lead plaintiff; however, you must meet certain legal
requirements. If you wish to discuss this action or have any
questions concerning this Notice or your rights or interests with
respect to these matters, please contact Michael Goldberg, Esquire,
or Richard A. Maniskas, Esquire, of Glancy Binkow & Goldberg
LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California
90067, by telephone at (310) 201-9150 or Toll Free at (888)
773-9224, by e-mail to info@glancylaw.com, or visit our website at
http://www.glancylaw.com.
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