Saxena White files securities fraud class action against STEC Inc. in the Central District of California
Boca Raton, November 9, 2009
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Boca Raton, November 9, 2009 – 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:
Joseph E. White, III Greg Stone
Saxena White P.A.
2424 North Federal Highway, Suite 257
Boca Raton, FL 33431
Tel: (561) 394-3399
Fax: (561) 394-3382
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.