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STEC, Inc. Summary: According to a press release dated November 07, 2009, 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 throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning STEC’s business, operations and prospects were materially false and misleading.
Specifically, the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company over sold its largest customer more inventory than it required; (2) that, as such, the Company overstated the demand for its ZeusIOPS SSD products; (3) that the Company's subsequent revenue and financial results for the following year would be negatively impacted; and (4) that, as a result of the above, Defendants' statements during the Class Period lacked a reasonable basis.
On November 3, 2009, STEC shocked investors when it announced that one of its largest customers, which accounts for 90 percent of STEC's ZeusIOPS SSD business and which had placed a $120 million order for the second half of 2009, would carry 2009 inventory into 2010, placing STEC's 2010 first quarter results at risk. As a result of this news, shares of STEC declined $9.01 per share, more than 38%, to close on November 4, 2009, at $14.14 per share, on unusually heavy volume.
INDUSTRY CLASSIFICATION:
SIC Code: 3572
Sector: Technology
Industry: Electronic Instruments & Controls
| COMPANY/ISSUER NAME: | STEC, Inc. |
| COMPANY/ISSUER TICKER: | STEC |
| COMPANY WEBSITE: | http://www.stec-inc.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Fred Jean, et al. v. STEC, Inc., et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint for Violations of the Federal Securities Laws - Demand for Jury Trial | |||
| Type: Complaint | Date on the document: 11/06/2009 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial | |||
| Case Name and/or Number: Daniel Munter, et al. v. STEC, Inc., et al. | |||
| Type: Complaint | Date on the document: 11/10/2009 | ||
| Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial | |||
| Case Name and/or Number: Fred Jean, et al. v. STEC, Inc., et al. | |||
| Type: Complaint | Date on the document: 11/19/2009 | ||
| Class Action Complaint for Violation of the Federal Securities Laws - Jury Trial Demanded | |||
| Case Name and/or Number: Marcel Weinberger, et al. v. STEC, Inc., et al. | |||
| Type: Complaint | Date on the document: 12/11/2009 | ||
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