STEC, Inc.

Class Period: Jun 16, 2009 to Feb 23, 2010

Lead Plaintiff Deadline: Jun 14, 2010 + Deadline passed

Summary of Case:

A securities class action has been filed against STEC, Inc. (STEC) ("STEC" or the "Company") on behalf of all securities purchasers from June 16, 2009 through November 3, 2009, inclusive ("Class Period"), in the United States District Court for the Central District of California.  

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.

If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.