Milberg LLP Announces the Filing of a Securities Class Action Lawsuit Against STEC, Inc. -- (NASDAQ: STEC)
December 14 2009 - 12:22PM
Marketwired
The law firm of Milberg LLP has filed a securities class action
lawsuit in the United States District Court for the Central
District of California on behalf of purchasers of STEC, Inc.
("STEC" or the "Company") (NASDAQ: STEC) common stock during the
period between June 16, 2009 and November 3, 2009 (the "Class
Period"). STEC is a Santa Ana, California-based leading global
provider of solid state technologies and solutions tailored to meet
the high-performance, high reliability needs of original equipment
manufacturers ("OEMs"). The action is captioned Weinberger v. STEC,
Inc., et al., and is numbered 09-1460. The complaint can be
obtained from the court or viewed on Milberg LLP's website
www.milberg.com.
The complaint, filed on December 11, 2009, charges STEC and
certain of its officers with violations of Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934, and Securities Exchange
Commission Rule 10b-5.
According to the complaint, during the Class Period, defendants
represented that STEC was effectively growing its business and that
the growth would continue. Such statements presented the Company's
historical results, its customers, its competitive position and its
prospects, in a very favorable light, causing the Company's stock
to trade at inflated levels. Such statements were materially false
and misleading because, contrary to the picture painted by
defendants and assurances to investors that STEC had no competition
at that stage, the Company was facing looming threats of
competition from other high technology companies. Defendants
further assured investors that enterprise end users were quickly
adopting solid state drive ("SSD") devices over traditional hard
disk drive ("HDD") devices. The complaint alleges that 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 top STEC officers/directors to sell 9 million
shares of their STEC stock at inflated prices in a secondary stock
offering in August 2009.
On November 3, 2009, STEC shocked investors when it reported its
third quarter 2009 financial results and its fourth quarter 2009
outlook, announcing an inventory warning that one of its customers
would carry 2009 inventory into 2010, impacting the Company's first
quarter 2010. STEC identified the customer as EMC Corporation, a
company which accounts for 90% of the Company's Zeus IOPS SSD
business. On this news, STEC's stock plummeted $9.01 per share to
close at $14.14 per share on November 4, 2009, a one-day decline of
over 38%, on unusually high volume of more than 31.9 million
shares.
If you purchased securities of STEC from June 16, 2009 through
November 3, 2009, you may move the court no later than January 5,
2010, and request that the court appoint you as lead plaintiff. A
lead plaintiff is a representative party acting on behalf of other
class members in directing the litigation. To be appointed lead
plaintiff, the court must decide that your claim is typical of the
claims of other class members, and that you will adequately
represent the class. Your share in any recovery will not be
enhanced or diminished by the decision whether or not to serve as a
lead plaintiff. You can recover as an absent class member without
moving for lead plaintiff. You may retain Milberg LLP, or other
attorneys, to serve as your counsel in this action.
The complaint has been filed as a class action on behalf of all
persons who own STEC common stock. No class has yet been certified,
and there can be no guarantee that a class will be certified.
About Milberg
Milberg LLP has been representing individual and institutional
investors for over 40 years and serves as lead counsel in federal
and state courts throughout the United States. Please visit the
Milberg website (http://www.milberg.com) for more information about
the firm.
If you have any questions you may contact the attorneys listed
below: Milberg LLP (New York) Andrei Rado, Esq. Anne Marie Vu, Esq.
One Pennsylvania Plaza, 49th Floor New York, NY 10119 Milberg LLP
(California) Jeff Westerman, Esq. Sabrina S. Kim, Esq. 300 South
Grand Avenue, Suite 3900 Los Angeles, CA 90071 Phone number: (800)
320-5081 Email: contactus@milberg.com Attorney Advertising. Prior
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