Contact Information: Contacts: Joseph E. White, III jwhite@saxenawhite.com Greg Stone gstone@saxenawhite.com Saxena White P.A. 2424 North Federal Highway, Suite 257 Boca Raton, FL 33431 Tel: (561) 394-3399 Fax: (561) 394-3382 www.saxenawhite.com
Saxena White P.A. Has Filed a Securities Fraud Class Action Against STEC, Inc.
| Source: Saxena White
BOCA RATON, FL--(Marketwire - November 10, 2009) - Notice is hereby given that Saxena White
P.A. has filed suit on behalf of shareholders of 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 viewed at the firm's website at
www.saxenawhite.com. If you purchased STEC stock between June 16, 2009 and
November 3, 2009, you may contact Joe White or Greg Stone at Saxena White
P.A. to discuss your rights and interests.
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 Saxena
White P.A. 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.
Saxena White P.A., which has offices in Boca Raton and Boston, specializes
in prosecuting securities fraud and complex class actions on behalf of
institutions and individuals. Currently serving as lead counsel in
numerous securities fraud class actions nationwide, the firm has recovered
hundreds of millions of dollars on behalf of injured investors and is
active in major litigation pending in federal and state courts throughout
the United States.