Greenfield & Goodman, LLC and Cuneo Gilbert & LaDuca, LLP Announce Shareholder Suit Commenced Against Principal Officers of STE
October 29 2012 - 2:02PM
Greenfield & Goodman, LLC and Cuneo Gilbert & LaDuca, LLP
today announced that shareholder litigation has been commenced in
the United States District Court for the Central District of
California by William Sokolowski, a purchaser of the common stock
of STEC, Inc. ("STEC" or the "Company"), who suffered substantial
losses following disclosure of material facts that had been
concealed prior to his purchases. STEC is based in Santa Ana,
California.
The Complaint in the Sokolowski action refers to conduct of the
principal shareholders of STEC, Manouchehr and Mehrdad Moshayedi
and other officers and directors of the Company before and during
the period June 16, 2009 and February 23, 2010 (the "Relevant
Period"), seeking to recover losses under the Securities Exchange
Act of 1934 (the "Exchange Act") and to obtain other relief
pursuant to relevant California state law derivatively for the
benefit of STEC.
The Complaint charges the Moshayedi brothers and certain of the
former officers and executives of STEC with violations of the
Exchange Act, breach of fiduciary duty and other serious
wrongdoing. The Complaint alleges that, before and throughout the
Relevant Period, the defendants made material misrepresentations
and failed to disclose material adverse facts about the Company's
true financial condition, business and prospects.
The Complaint alleges that defendants caused the Company to
disseminate financial statements that were not fairly presented in
conformity with Generally Accepted Accounting Principles and were
materially false and misleading, and failed to make complete and
timely disclosures concerning certain business contracts. It
further alleges that Manouchehr, Mehrdad and Massoud Moshayedi (as
well as trusts controlled by them) sold STEC common stock in a
secondary public offering on August 6, 2009 for $267.8 million
and/or during other times for more than $100 million while in
possession of material information not disclosed to the public. The
SEC has since sued Manouchehr Moshayedi.
If you wish to discuss this action or have any questions
concerning your rights or interests or would like to receive the
Complaint by e-mail, please contact plaintiff's counsel, Richard D.
Greenfield, Esq. of Greenfield & Goodman, LLC at 917-495-4446,
or via e-mail at whitehatrdg@earthlink.net or Matthew Miller, Esq.
of Cuneo, Gilbert & LaDuca at 202-789-3960, or via e-mail at
mmiller@cuneolaw.com.
Richard D. Greenfield, Esq. of Greenfield & Goodman, LLC has
over 35 years of experience in banking, securities and consumer
litigation, having served as Lead or Co-Lead Counsel for plaintiffs
in many shareholder class and derivative actions. Mr. Greenfield is
a former director of a NYSE-listed bank holding company.
Cuneo Gilbert & LaDuca, a firm with offices in Washington,
D.C., New York, Los Angeles, St. Louis and Alexandria, Va.,
specializes in the representation of plaintiffs in consumer,
antitrust, civil rights and securities class actions and is active
in major litigations pending in federal and state courts throughout
the United States.
The Cuneo Gilbert & LaDuca, LLP logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=15463
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