SOURCE: Bernstein Litowitz Berger & Grossmann LLP; Kahn Swick & Foti, LLC

April 13, 2010 12:06 ET

Bernstein Litowitz Berger & Grossmann LLP & Kahn Swick & Foti, LLC Announce Filing of Consolidated Class Action Complaint Against STEC, Inc. and Top Officers

NEW YORK, NY and NEW ORLEANS, LA--(Marketwire - April 13, 2010) -  Court-appointed Lead Counsel Bernstein Litowitz Berger & Grossmann LLP and Kahn Swick & Foti, LLC (collectively, "Lead Counsel") today announced that on April 9, 2010, the Court-appointed Lead Plaintiffs filed a consolidated class action complaint in the consolidated action uncaptioned In re STEC, Inc. Securities Litigation, Lead Case No. SACV 09-01304-JVS, pending in the United States District Court for the Central District of California, Southern Division (the "Court"). The consolidated complaint is brought on behalf of all persons and entities who purchased or otherwise acquired the common stock of STEC, Inc. ("STEC") (NASDAQ: STEC) between June 16, 2009, and February 23, 2010 (the "Class Period"), and were damaged thereby (the "Class"). The consolidated complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against STEC, Manouch Moshayedi, Mehrdad ("Mark") Moshayedi, and Raymond D. Cook ("Defendants"). The consolidated complaint alleges that Defendants made materially false statements and omissions during the Class Period regarding the sales, demand and competition for STEC's products. Ultimately, the truth about STEC's sales, demand and competition began to be revealed to investors and analysts through a series of corrective disclosures beginning on September 17, 2009. The allegations in the consolidated complaint are based upon information obtained through Lead Counsel's extensive investigation and analysis.

By Orders dated January 21, 2010, and March 26, 2010, the Court consolidated actions relating to Defendants' alleged materially false and misleading statements and omissions regarding the sales, demand and competition for STEC's products. By Order dated February 8, 2010, the Court appointed Lead Plaintiffs over the consolidated action.

On March 26, 2010, the Court ordered Lead Plaintiffs to issue notice to potential lead plaintiffs of the filing of their consolidated complaint which extended the Class Period end date from November 3, 2009 to February 23, 2010. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. You can view a copy of the consolidated complaint as filed and this notice online at www.blbglaw.com or at www.ksfcounsel.com. Any member of the class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

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