Staktek Holdings, Inc. (Nasdaq:STAK) is a provider of chip-stacking and module technologies for high-speed, high-capacity memory systems.
As reported by the Company’s FORM 10-K for the fiscal year ended December 31, 2005, on October 22, 2004, a class action Complaint for violations of U.S. federal securities laws was filed in the U.S. District Court in New Mexico against the Company and two of its executive officers (the “Defendants”). The Plaintiff claims that the Defendants failed to disclose to the public an anticipated shortage of computer memory chips and that they knew or recklessly disregarded that the anticipated shortage would have a materially adverse impact on Staktek revenue and earnings. In addition, the Plaintiff claims that the Defendants failed to disclose to investors that the industry’s transition to a new generation of higher-capacity memory chips was causing computer makers to stockpile supplies of older memory chips, increasing the shortage. The suit covers individuals who purchased Staktek’s stock between November 26, 2003 and May 19, 2004. In April 2005, the case was transferred to federal district court in Austin, Texas, and in June the Plaintiff amended her Complaint, adding the Company’s chairman of the board as a Defendant. In July 2005, the Company filed a motion to dismiss the amended Complaint, which was then pending.
According to a press release dated April 4, 2006, Glancy Binkow & Goldberg LLP announced that it has successfully defeated Defendants' motions to dismiss Plaintiffs' Amended Complaint, thereby permitting shareholder Plaintiffs to pursue securities claims against Staktek and Staktek officers and directors. Glancy Binkow & Goldberg LLP was previously appointed lead Counsel in the Class Action lawsuit.
According to a press release dated March 27, 2007 Staktek announced that the U.S. District Court for the Western District of Texas dismissed, in its entirety, Helen Holzwasser v. Staktek Holdings, Inc., the class action securities Complaint filed against the Company in 2004.
