SOURCE: Brower Piven, A Professional Corporation

November 13, 2009 17:37 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $500,000 From Investment in STEC, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the January 5, 2010 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - November 13, 2009) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of purchasers of the common stock of STEC, Inc. ("STEC" or the "Company") (NASDAQ: STEC) during the period between June 16, 2009 and November 3, 2009, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than January 5, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/986-0036) to answer any questions you may have in that regard.

The complaint accuses the defendants of violations of the Securities Act of 1933 by virtue of misleading statement to investors in its offering documents (registration statement and prospectus) for its secondary offering of Company stock to investors on or about August 6, 2009 and the Securities Exchange Act of 1934 by falsely stating during the Class Period that the Company's purported success was the result of the successful adaptation and use of STEC's ZeusIOPS products by EMC, IBM, or Sun Microsystems, when, in fact, IBM and Sun Microsystems were having significant difficulties integrating STEC's products, and by virtue of the Company's failure to disclose during the Class Period that the Company over sold its largest customer, ECM, more inventory than it required and thus overstated the demand for its ZeusIOPS SSD products such that the Company's subsequent revenue and financial results for the following year would be materially negatively impacted. According to the complaint, on November 3, 2009, after STEC shocked investors when it announced that ECM's $120 million order for the second half of 2009 would carry ECM's 2009 inventory needs into 2010, thus placing STEC's 2010 first quarter results at risk, STEC's stock declined significantly.

If you have suffered a net loss for all transactions in STEC, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-986-0036, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/986-0036
    Email Contact