Company: | STEC Inc, |
Ticker Symbol: | STEC |
Class Period: | Jun-16-09 to Nov-3-09 |
Date Filed: | Nov-25-09 |
Lead Plaintiff Deadline: | Jan-24-10 |
Court: | Central District of California |
Allegations: |
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.
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.