Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against STEC, Inc.

Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) (http://www.csgrr.com/cases/stec/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of STEC, Inc. (“STEC”) (NASDAQ:STEC) common stock during the period between June 16, 2009 and November 3, 2009 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from November 6, 2009. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/stec/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges STEC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. STEC designs, develops, manufactures and markets custom memory solutions based on flash memory and dynamic random access memory technologies.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding STEC’s customers, its competitive position and its prospects. STEC once had the solid-state drive market to itself. However, the Company specifically failed to disclose looming threats of competition from other high technology companies, such that STEC would not be the only company to gain design wins. Defendants assured investors that STEC had no competition at that stage. As a result of defendants’ false and misleading statements, STEC stock traded at artificially inflated prices during the Class Period, reaching a high of $41.84 per share on September 10, 2009. This inflated stock price permitted the top STEC officers to sell 9 million shares of their STEC stock in a secondary stock offering in August 2009.

On September 17, 2009, WedBush Morgan published an analyst report on STEC stating that one of STEC’s customers was in final qualification stages with one of STEC’s competitors and that the Company’s competitors would be gaining design wins much earlier than previously expected. As a result of this report, STEC’s stock fell $6.37 per share to close at $31.53 per share on September 17, 2009 – a one-day decline of over 16%, on volume of more than 21.2 million shares.

Then, on November 3, 2009, after the market closed, STEC reported its third quarter 2009 financial results and its fourth quarter 2009 outlook, announcing that one of its customers would carry 2009 inventory into 2010, impacting the Company’s first quarter 2010. On this news, STEC’s stock fell $9.01 per share to close at $14.14 per share on November 4, 2009, a one-day decline of over 38%, on volume of more than 31.9 million shares.

Plaintiff seeks to recover damages on behalf of all purchasers of STEC common stock during the Class Period (the “Class”). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.

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