NEW YORK, Nov. 9, 2012 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against OCZ Technology Group, Inc. ("OCZ Technology" or the "Company") (Nasdaq:OCZ) and certain of its officers. The class action (C 12-05296-EMC), filed in United States District Court, Northern District of California, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired the common stock of OCZ Technology between July 11, 2012 and October 11, 2012, inclusive (the "Class Period"). This class action seeks to recover damages caused by OCZ Technology's violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased OCZ Technology securities during the Class Period, you have until December 11, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
OCZ Technology designs, manufactures, and distributes enterprise and consumer solid drives. The Company also offers power management and memory solutions utilized in computing, industrial, multimedia editing and entertainment performance computing.
The Complaint alleges that throughout the Class Period, the Company made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was providing extraordinary customer incentives to its customers, which impacted its revenue recognition; (2) the Company was improperly accounting for customer incentive programs; (3) the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On September 5, 2012, the Company announced that its preliminary revenues for the 2013 fiscal second quarter ended on August 31, 2012, were $110 to $120 million compared to its previously announced guidance of $130 million to $140 million. On this news, OCZ Technology shares declined $1.01 per share, or nearly 19%, to close at $4.35 per share on September 6, 2012.
On September 17, 2012, the Company announced the resignation of Ryan M. Petersen as President, Chief Executive Officer and a director of the Company. On this news, OCZ Technology shares declined $0.33 per share or more than 7%, to close at $4.13 per share on September 18, 2012.
On October 10, 2012, the Company disclosed the filing of an extension to file its Form 10-Q for the second quarter of fiscal year 2013. The Company also disclosed that revenue for the second quarter "will be materially lower than the September 5th preliminary revenue range of $110 to $120 million" due to the impact of its customer incentive programs. On these revelations, OCZ Technology shares declined $1.27 per share or over 40%, to close at $1.88 per share, on October 10, 2012.
On October 11, 2012, the Company filed a Form NT 10-Q with the SEC disclosing that "the Company cannot currently estimate the exact filing of the Form 10-Q for the quarter ended August 31, 2012" as it requires additional time to complete the accounting review concerning its customer incentive programs. On this news, OCZ Technology shares declined an additional $0.39 or nearly 21%, to close at $1.47 per share on October 12, 2012.
The Pomerantz Firm, with offices in New York, Chicago and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.