STEC, Inc. - Securities Class Action

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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.

On January 20, 2010, the Plaintiff voluntarily dismissed the above-captioned action, without prejudice, as to all Defendants. The next day, January 21, 2010, an order consolidating related actions and setting briefing schedule was entered into the Court’s docket.

On February 08, 2010, a minute order was issued by the court granting plaintiffs Arman Rashtchi and Keith Ovitt’s Motions for Appointment of Lead Plaintiff and Lead Counsel and Denying All Other Motions for Appointment of Lead Counsel.

On April 06, 2010, a consolidated class action complaint was filed with the court by the plaintiffs against the defendants.

On August 13, 2010, a First Amended Consolidated Complaint against defendant was filed by the lead plaintiff.

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.

COURT: C.D. California	DOCKET NUMBER: 09-CV-01304
JUDGE NAME: Hon. James V. Selna
DATE FILED: 11/06/2009	SOURCE:
CLASS PERIOD START: 08/03/2009	CLASS PERIOD END: 11/03/2009
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Glancy Binkow & Goldberg LLP (Los Angeles) 1801 Ave. of the Stars, Suite 311, Los Angeles, CA, 90067 (voice) 310.201.915, (fax) 310. 201-916, info@glancylaw.com Saxena White PA (Boca Raton) 2424 N. Federal Highway, Suite 257, Boca Raton, FL, 33431 (voice) 561.394.3399, (fax) 561.394.3399, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

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
Notice Of Voluntary Dismissal
Type: Notice		Date on the document: 01/20/2010
Order Consolidating Related Actions And Setting Briefing Schedule
Type: Order of Consolidation		Date on the document: 01/21/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 03/08/2010

REFERENCE COMPLAINT

Fred Jean, et al. v. STEC, Inc., et al.

COURT: C.D. California	DOCKET NUMBER: 09-CV-01304
JUDGE NAME:
DATE FILED: 04/09/2010	SOURCE:
CLASS PERIOD START: 06/16/2009	CLASS PERIOD END: 02/23/2010
TYPE OF COMPLAINT: First Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Bernstein Litowitz Berger & Grossmann LLP (New York, NY) 1285 Avenue of the Americas, 33rd Floor, New York, NY, 10019 (voice) 212.554.1400, (fax) 212.554.1444, blbg@blbglaw.com Kahn Swick & Foti, LLC (Updated New York) 500 Fifth Avenue, Ste. 1810, New York, NY, 10110 (voice) 212.696.3730, (fax) 504.455-1498, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
Civil Minutes - General
Type: Order		Date on the document: 02/08/2010
Consolidated Complaint For Violations Of The Federal Securities Laws
Type: Complaint		Date on the document: 04/09/2010
Consolidated Amended Complaint For Violation Of The Federal Securities Laws
Type: Complaint		Date on the document: 08/13/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 08/25/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 11/16/2010
U.S. District Court Civil Docket
Type: Other		Date on the document: 07/15/2011
U.S. District Court Civil Docket
Type: Other		Date on the document: 10/28/2011

OTHER DOCUMENTS
Class Action Complaint For Violation Of Federal Securities Laws
Case Name and/or Number: Hadi Sakhai, et al. v. STEC, Inc., et al.
Type: Complaint		Date on the document: 11/06/2009
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
Verified Shareholder Derivative Complaint For Breach Of Fiduciary Duty
Case Name and/or Number: Building Trades United Pension Trust Fund, et al. v. STEC, Inc., et al.
Type: Complaint		Date on the document: 01/29/2010
U.S. District Court Civil Docket
Case Name and/or Number: Ganesh K. Meda, et al. v. STEC, Inc., et al.
Type: Docket		Date on the document: 03/31/2010

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