SOURCE: Weiss & Lurie

November 25, 2009 18:23 ET

Weiss & Lurie Files Class Action Lawsuit Against STEC, Inc.

LOS ANGELES, CA--(Marketwire - November 25, 2009) - Weiss & Lurie 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 STEC, Inc. ("STEC") (NASDAQ: STEC) securities from June 16, 2009 through November 3, 2009 (the "Class Period").

The complaint alleges that the defendants, who are STEC and certain of the Company's officers, violated the Securities and Exchange Act of 1934 by issuing materially false and misleading statements regarding the Company, its financial condition, customers, products, competitive position and prospects. Specifically, the complaint alleges that defendants represented that STEC had no competitors for certain of its solid state disk drive products ("SSDs"), and anticipated increases in the sales of its SSD products and continued profitability despite a worldwide downturn in the disk drive market. As a result of defendants' allegedly false and misleading statements, STEC stock traded at artificially inflated prices during the Class Period, reaching a Class Period high of $41.84 per share on September 10, 2009. During the Class Period, defendants Manouch Moshayedi and Mark Moshayedi sold 9 million shares of their personal holdings of STEC stock in a public secondary stock offering for proceeds of approximately $268 million.

On November 3, 2009, STEC announced that one of its largest customers would carry 2009 inventory into 2010, negatively affecting the Company's first quarter 2010 financial prospects. On this news, the price of STEC stock dropped more than $9.00 per share to close at $14.14 per share on November 4, 2009, a loss of more than 38% of the stock's value in a single day.

The action seeks to recover damages on behalf of investors who purchased STEC securities during the Class Period. Plaintiff is represented by Weiss & Lurie, a law firm possessing significant experience and expertise in prosecuting class actions on behalf of shareholders in federal and state courts throughout the United States. Weiss & Lurie has been responsible for collectively recovering more than a billion dollars on behalf of class members and is one of the nation's leading law firms representing shareholders in securities class actions.

If you purchased or otherwise acquired STEC securities from June 16, 2009 through November 3, 2009, you may move the court no later than January 5, 2010 for appointment as lead plaintiff. In order to serve as a lead plaintiff, you must meet certain legal requirements. You do not need to seek appointment as a lead plaintiff in order to share in any recovery obtained in the case.

If you would like to view a copy of the complaint or additional information about this action and Weiss & Lurie, please visit www.weisslurie.com. If you would like to discuss this action, or have any questions about this notice or your rights as a potential class member, please contact:

Jordan Lurie, Esq. or Leigh Parker, Esq. (310/208-2800) or via email at infoca@weisslurie.com.

Contact Information

  • Contact:
    Jordan Lurie, Esq.
    Leigh Parker, Esq.
    (310/208-2800)
    email: Email Contact