| Company: | Silicon Storage Technology, Inc. |
| Ticker Symbol: | NASD: SSTI |
| Class Period: | March 30, 2004 to December 20, 2004 |
| Date Filed: | Jan-21-05 |
| Lead Plaintiff Deadline: | Mar-20-05 |
| Court: | Northern District, CA |
| Allegations: |
A class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Silicon Storage Technology, Inc. ("Silicon Storage") (NASDAQ:SSTI) common stock during the period between March 30, 2004 and December 20, 2004 (the "Class Period").
The complaint charges Silicon Storage and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Silicon Storage is a supplier of flash memory semiconductor devices for the digital consumer, networking, wireless communications and Internet computing markets.
The complaint alleges that during the Class Period, defendants issued false and misleading statements regarding the Company's business and prospects. The true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company's sales and margins were being materially impacted by Macronix and Intel actively lowering average selling prices; (b) the Company was not on track to achieve Q4 profitability, but rather losses; (c) the Company's gross margin projections were overstated by at least 1,000%; (d) the Company's accounting during the Class Period was false and misleading; and (e) as a result, the Company's Q4 estimates of revenue of $120-$130 million and income of $0.10 to $0.14 per share were grossly inflated and the Company's reported assets were materially overstated. As a result of the defendants' false statements, Silicon Storage's stock traded at inflated prices during the Class Period, increasing to as high as $17.31 on April 14, 2004, whereby the Company's top officers and directors sold more than $2.9 million worth of their own shares.
On December 20, 2004, the Company issued a press release announcing that "its revenue in the fourth quarter is expected to be between $102 and $108 million versus previous guidance of $120 to $130 million. Due to current market conditions, the company expects to record an inventory charge of between $20 and $25 million for excess inventory and to write certain products down to their current estimated market values." On this news, the Company's shares plummeted from $7.00 to $5.43 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges Silicon Storage and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Silicon Storage is a supplier of flash memory semiconductor devices for the digital consumer, networking, wireless communications and Internet computing markets.
The complaint alleges that during the Class Period, defendants issued false and misleading statements regarding the Company's business and prospects. The true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company's sales and margins were being materially impacted by Macronix and Intel actively lowering average selling prices; (b) the Company was not on track to achieve Q4 profitability, but rather losses; (c) the Company's gross margin projections were overstated by at least 1,000%; (d) the Company's accounting during the Class Period was false and misleading; and (e) as a result, the Company's Q4 estimates of revenue of $120-$130 million and income of $0.10 to $0.14 per share were grossly inflated and the Company's reported assets were materially overstated. As a result of the defendants' false statements, Silicon Storage's stock traded at inflated prices during the Class Period, increasing to as high as $17.31 on April 14, 2004, whereby the Company's top officers and directors sold more than $2.9 million worth of their own shares.
On December 20, 2004, the Company issued a press release announcing that "its revenue in the fourth quarter is expected to be between $102 and $108 million versus previous guidance of $120 to $130 million. Due to current market conditions, the company expects to record an inventory charge of between $20 and $25 million for excess inventory and to write certain products down to their current estimated market values." On this news, the Company's shares plummeted from $7.00 to $5.43 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Register your Case
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
