Investor Notice: Investigation on Behalf of Investors in STEC, Inc. Announced by Former Attorney General of Louisiana & KSF L...
November 05 2009 - 6:50PM
Business Wire
Former Attorney General of Louisiana, Charles Foti, Esq. and the
law firm of Kahn Swick & Foti, LLC announces that it has
commenced an investigation into STEC, Inc ("STEC" or the "Company")
(Nasdaq: STEC) to determine whether it has violated federal
securities laws by issuing false and misleading statements to its
shareholders between the dates of 6/16/09 to 11/3/09.
On November 3, 2009, shares of STEC lost over thirty percent of
their value after the company lowered its 2009 guidance below Wall
Street's outlook, citing inventory surpluses at one of its largest
customers, EMC (NYSE: EMC). STEC, which designs, develops,
manufactures, and markets solid-state computer memory drive
products, including the ZeusIOPS solid state drives, warned that
EMC is carrying an inventory glut, suggesting that demand for
STEC's solid state drives could be weaker than expected. While
analysts expected some inventory build by the first quarter of
2010, the glut of inventory in the third quarter of 2009 came as a
complete surprise to analysts and investors.
KSF is investigating whether the immediate decline in the
price of STEC shares has been driven by the fact that as recently
as August 3, 2009, STEC’s corporate insiders, including Manouch
Moshayedi, the Company’s Chief Executive Officer and Chairman of
the Board, and his son, Mark Moshayedi, its President, Chief
Operating Officer, Chief Technical Officer and Secretary, sold off
as many as 10.35 million shares of their privately held STEC shares
in a registered Secondary Offering, to realize gross proceeds of
approximately $320,850,000.00, prior to any disclosure regarding
the severe inventory build up at EMC. According to media reports,
EMC is responsible for as much as 90% of the Company’s Zeus solid
state hard drive sales.
If you have information that would assist KSF in its
investigation, or would like to discuss your legal rights, you may
e-mail or call KSF, without obligation or cost to you. You may
contact Managing Partner Lewis Kahn of KSF direct, toll free
1-866-467-1400, ext. 100, or by email at lewis.kahn@ksfcounsel.com.
KSF focuses its practice on securities fraud litigation, and the
firm's lawyers have significant experience working on securities
fraud cases that have resulted in significant recoveries for
shareholders. For more information on KSF, please visit
www.ksfcounsel.com.
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