NEW ORLEANS - (Business Wire) Kahn Swick & Foti, LLC (“KSF”) has filed a class action lawsuit against STEC, Inc. (“STEC” or the “Company”) in the United States District Court for the Central District of California, on behalf of purchasers of the common stock of the Company between June 16, 2009, and November 3, 2009, inclusive (the “Class Period”). No class has yet been certified in this action. If you would like to discuss your legal rights, along with the lead plaintiff position and its related responsibilities including overseeing lead counsel with a goal of obtaining a fair settlement, you may e-mail or call KSF Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, via cell phone after hours at 504-301-7900, or by email at lewis.kahn@ksfcounsel.com.
STEC and certain of its officers and directors, and the Company’s underwriters – collectively, “Defendants” - are charged with including, or allowing the inclusion of, materially false and misleading statements in the Registration Statement and Prospectus issued in connection with its August 6, 2009, Secondary Offering, in violation of the Securities Act of 1933. Additionally, Defendants are charged with making a series of materially false and misleading statements related to the Company’s business and operations in violation of the Securities Exchange Act of 1934.
The Complaint charges that contrary to the positive statements made by Defendants during the Class Period, on November 3, 2009, Defendants revealed: STEC would come nowhere near achieving guidance previously sponsored and/or endorsed by Defendants; STEC’s largest customer, which accounted for at least 90% of its ZIOS solid state drives, had so much excess inventory from the second and third quarters of 2009 that it would be impossible for the Company to meet earnings expectations for 3Q:09 or 4Q:09; and it would probably be well into 2010 before EMC could work off the excess.
The following day, on November 4, 2009, STEC’s stock price collapsed over 30% to close at just above $14.00 per share – a Class Period trading low – on huge volume of almost 32 million shares, many times the average daily trading volume of STEC’s stock. Shareholders who purchased at the Class Period high suffered losses of as much as $28.00 per share, while Company insiders were selling over $320 million of their privately-held shares.
If you wish to serve as lead plaintiff in this class action lawsuit, you must move the Court no later than January 5, 2010. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call KSF Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, after hours via cell phone 504-301-7900, or by email at lewis.kahn@ksfcounsel.com. To learn more about KSF, you may visit www.ksfcounsel.com. KSF is a law firm focused on securities class action litigation with offices in New Orleans and New York City.
KSF's lawyers have significant experience litigating complex securities class actions. Among other cases, KSF has been appointed Lead or Co-Lead Counsel in the following securities cases: In re: U.S. Auto Parts Networks, Inc. Securities Litigation, C.D. Cal.; In re Xethanol Corporation Securities Litigation, S.D.N.Y.; In re Superior Offshore International, Inc. Securities Litigation, S.D. Tex.; Terayon Comm. Systems Inc., N.D. Cal.; and In re BigBand Networks, Inc. Securities Litigation, N.D. Cal.
SPECIAL NOTICE: KSF encourages you to carefully evaluate any firm you may consider to represent your interests in the STEC class action. The Private Securities Litigation Reform Act ("PSLRA") permits Company shareholders to choose counsel of their choice to prosecute this action. Critical components of a law firm's ability to successfully prosecute this action and obtain a strong recovery for you include the resources it will dedicate to prosecution of the case, including the number of lawyers the firm has available for the STEC action in particular, AND especially the quality of the firm's work.
Kahn Swick & Foti, LLC
Lewis Kahn, 1-866-467-1400, ext. 100
Lewis.kahn@ksfcounsel.com
