Saxena White P.A. Has Filed a Securities Fraud Class Action Against STEC, Inc.
November 10 2009 - 4:05PM
Marketwired
Notice is hereby given that Saxena White P.A. has filed suit on
behalf of shareholders of STEC, Inc. ("STEC" or the "Company")
(NASDAQ: STEC).
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 STEC common stock between June 16, 2009 and
November 3, 2009, inclusive (the "Class Period"). STEC provides
technology solutions and manufactures high performance memory and
storage products used in high performance computing.
Contrary to the positive statements made by Defendants during
the Class Period, on November 3, 2009 Defendants revealed that STEC
would come nowhere near achieving guidance previously offered by
the Company. STEC's largest customer, EMC, which accounted for at
least 90% of its ZIOS solid state drives, had so much excess
inventory from the second and third quarters of 2009 that it would
be impossible for the Company to meet earnings expectations for the
third and fourth quarters of 2009. In addition, STEC revealed that
it would probably be well into 2010 before EMC could work off the
excess inventory.
The following day, on November 4, 2009, STEC's stock price
collapsed over 30% to close at just above $14.14 per share on
volume of over 32 million shares, many times the average daily
trading volume of STEC's stock. The exaggerated and fraudulent
statements made by Defendants during the Class Period had the
effect of artificially inflating STEC's stock price, which enabled
certain of the Company's executives, including 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.
A copy of the complaint may be viewed at the firm's website at
www.saxenawhite.com. If you purchased STEC stock between June 16,
2009 and November 3, 2009, you may contact Joe White or Greg Stone
at Saxena White P.A. to discuss your rights and interests.
If you purchased STEC, Inc. shares in the class period,
including purchases made pursuant to the August 5, 2009 Secondary
Offering, and wish to apply to be the lead plaintiff in this
action, a motion on your behalf must be filed with the court no
later than January 5, 2009. You may contact Saxena White P.A. to
discuss your rights regarding the appointment of lead plaintiff and
your interest in the class action. Please note that you may also
retain counsel of your choice and need not take any action at this
time to be a class member.
Saxena White P.A., which has offices in Boca Raton and Boston,
specializes in prosecuting securities fraud and complex class
actions on behalf of institutions and individuals. Currently
serving as lead counsel in numerous securities fraud class actions
nationwide, the firm has recovered hundreds of millions of dollars
on behalf of injured investors and is active in major litigation
pending in federal and state courts throughout the United
States.
Contacts: Joseph E. White, III jwhite@saxenawhite.com Greg Stone
gstone@saxenawhite.com Saxena White P.A. 2424 North Federal
Highway, Suite 257 Boca Raton, FL 33431 Tel: (561) 394-3399 Fax:
(561) 394-3382 www.saxenawhite.com
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