Roy Jacobs & Associates Files Class Action on Behalf of Purchasers of STEC, Inc. Securities -- STEC
March 04 2010 - 5:39AM
Roy Jacobs & Associates announces that it has filed a class
action complaint in the United States District Court for the
Central District of California on behalf of purchasers of the
common stock of STEC, Inc.("STEC") (Nasdaq:STEC) during the period
from November 4, 2009 through February 23, 2010, alleging claims
for securities fraud pursuant to the federal securities
laws. The Complaint was filed against STEC and its Chief
Executive.
For further information, please contact Roy L. Jacobs, Esq.
toll-free at 1-888-884-4490 or by e-mail to
rjacobs@jacobsclasslaw.com, or visit our Website where you can
obtain further information and join the action.
The complaint alleges that on November 3, 2009, STEC represented
in a conference call that EMC's inventory of STEC's SSD products
was affecting STEC's sales, but that this problem could be
ameliorated by energizing sales force efforts and increasing
consumer education about SSDs. In fact, however, the problem
was not a lack of sales force effort or consumer knowledge about
SSDs, but consumer resistance to purchasing the ultimate product
due to its cost, performance, and flexibility of use.
Then, on February 23, 2010, STEC revealed that it believed "the
first half of 2010 will be a trough period for our business due to
an inventory carryover by our largest customer [EMC] . . . [B]ased
on our best estimates we now anticipate [the EMC] inventory
carryover to continue to negatively impact our sales to this
customer during the first half of 2010, as we do not expect any
meaningful production orders from this customer during that time."
As a result, STEC is earning half the revenue analysts
predicted STEC would earn. As a result of this surprise
announcement, STEC shares dropped over 23% in value on February 24,
2010, a decline of $3.15 on extraordinary trading volume, and have
not recovered.
If you purchased STEC common stock during the period from
November 4, 2009 through February 23, 2010, whether or not you
still hold your shares, and you are interested in discussing your
rights free of charge, please contact Roy L. Jacobs. Mr.
Jacobs will be glad to personally speak with you, or you may visit
our Website at www.jacobsclasslaw.com. You may qualify to
serve as Lead Plaintiff on behalf of the Class. All motions
for appointment as Lead Plaintiff must be filed by May 3,
2010. You do not have to sell your shares to serve as a Lead
Plaintiff.
CONTACT: Roy Jacobs & Associates
Roy L. Jacobs, Esq.
1-888-884-4490
rjacobs@jacobsclasslaw.com
www.jacobsclasslaw.com
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