STEC INC
SymbolSTEC

This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

Law Offices of Howard G. Smith Encourages Investors Who Have Losses in Excess of $1 Million From Investment in STEC, Inc. to Inquire Before January 5, 2010, About Serving as Lead Plaintiff in the Securities Fraud Class Action Lawsuit -- STEC

2009-11-16 15:10 ET - News Release

BENSALEM, Pa., Nov. 16, 2009 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith, representing investors of STEC, Inc. ("STEC" or the "Company") (Nasdaq:STEC), announces a class action lawsuit in United States District Court on behalf of a class (the "Class") consisting of all persons or entities who purchased the securities of STEC between June 16, 2009 and November 3, 2009, inclusive (the "Class Period"). The class action lawsuit was filed in the United States District Court for the Central District of California.

The Complaint charges STEC and certain of the Company's executive officers with violations of federal securities laws. STEC designs, manufactures and markets enterprise-class solid-state drives for use in high performance storage and server systems, and high-density dynamic random access memory modules for networking, communications and industrial applications. The Complaint alleges that defendants knew or recklessly disregarded that their public statements concerning STEC's business, operations and prospects were materially false and misleading. Specifically, throughout the Class Period the defendants misrepresented and/or failed to disclose that: (1) the Company oversold its largest customer more inventory than it required; (2) as such, the Company overstated the demand for its ZeusIOPS SSD products; (3) the Company's subsequent revenue and financial results for the following year would be negatively impacted; and (4), as a result of the above, defendants' statements during the Class Period lacked a reasonable basis.

The remainder is available to Stockwatch subscribers.
If you would like to give the Stockwatch system a try, click here for a free 30 day trial subscription.