SOURCE: Izard Nobel LLP

November 09, 2009 16:25 ET

Izard Nobel LLP Announces Class Action Lawsuit Against STEC, Inc.

WEST HARTFORD, CT--(Marketwire - November 9, 2009) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of those who purchased the common stock of STEC, Inc. ("STEC" or the "Company") (NYSE: STEC) between June 16, 2009 and November 3, 2009 (the "Class Period"). Also included are those who purchased in the August 6, 2009 Secondary Offering.

The Complaint charges that STEC and certain of the Company's executive officers violated federal securities laws. Specifically, the defendants made false and/or misleading statements and/or failed to disclose: (i) that STEC over sold its largest customer more inventory than it required; (ii) the Company overstated the demand for certain products; (iii) that STEC's subsequent revenue and financial results for the following year would be negatively impacted; and (iv) that, as a result, Defendants' statements during the Class Period lacked a reasonable basis.

On November 3, 2009, STEC announced that one of its largest customers, which accounts for 90 percent of STEC's ZeusIOPS SSD business and which had placed a $120 million order for the second half of 2009, would carry 2009 inventory into 2010, placing STEC's 2010 first quarter results at risk. On this news, shares of STEC fell $9.01 per share, more than 38%, to close on November 4, 2009, at $14.14 per share.

If you are a member of the class, you may, no later than January 5, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit:, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: For more information about class action cases in general, please visit our website:

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