Weiss & Lurie Files Class Action Lawsuit Against STEC, Inc.
November 25 2009 - 6:23PM
Marketwired
Weiss & Lurie announces 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.
("STEC") (NASDAQ: STEC) securities from June 16, 2009 through
November 3, 2009 (the "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 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 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 stock in a
public secondary stock offering for proceeds of approximately $268
million.
On November 3, 2009, STEC announced that one of its largest
customers would carry 2009 inventory into 2010, negatively
affecting the Company's first quarter 2010 financial prospects. On
this news, the price of STEC stock dropped more than $9.00 per
share to close at $14.14 per share on November 4, 2009, a loss of
more than 38% of the stock's value in a single day.
The action seeks to recover damages on behalf of investors who
purchased STEC securities during the Class Period. Plaintiff is
represented by Weiss & Lurie, a law firm possessing significant
experience and expertise in prosecuting class actions on behalf of
shareholders in federal and state courts throughout the United
States. Weiss & Lurie has been responsible for collectively
recovering more than a billion dollars on behalf of class members
and is one of the nation's leading law firms representing
shareholders in securities class actions.
If you purchased or otherwise acquired STEC securities from June
16, 2009 through November 3, 2009, you may move the court no later
than January 5, 2010 for appointment as lead plaintiff. In order to
serve as a lead plaintiff, you must meet certain legal
requirements. You do not need to seek appointment as a lead
plaintiff in order to share in any recovery obtained in the
case.
If you would like to view a copy of the complaint or additional
information about this action and Weiss & Lurie, please visit
www.weisslurie.com. If you would like to discuss this action, or
have any questions about this notice or your rights as a potential
class member, please contact:
Jordan Lurie, Esq. or Leigh Parker, Esq. (310/208-2800) or via
email at infoca@weisslurie.com.
Contact: Jordan Lurie, Esq. Leigh Parker, Esq. (310/208-2800)
email: Email Contact
Simpletech (NASDAQ:STEC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Simpletech (NASDAQ:STEC)
Historical Stock Chart
From Jul 2023 to Jul 2024