BOSTON, Nov. 23, 2009 (GLOBE NEWSWIRE) -- The Law Office of Peter A. Lagorio announces that a securities class action has been filed against 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 obtained from the Law Office of Peter Lagorio. If you purchased STEC stock between June 16, 2009 and November 3, 2009, you may contact Peter A. Lagorio:
Law Office of Peter A. Lagorio 63 Atlantic Avenue Boston, MA 02110 (800) 830-7784 plagorio@lagoriolaw.com
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 the Law Office of Peter A. Lagorio 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.