If you purchased STEC, Inc. (Public, NASDAQ:STEC)
According to the complaint filed in 2009 in United States District Court for the Central District of California the plaintiff alleged that STEC and certain of its executive officers violated Federal Securities Laws by knowing or recklessly disregarding that their public statements concerning STEC’s business, operations and prospects were materially false and misleading.
STEC’s 12months Total Revenue rose from $188.65million in 2007 to $354.18million in 2009. Its Net Income reported in 2007 Total Revenue of $188.65million with a Net Income of $4.29million and in 2008 Total Revenue of $227.44million with a Net Income of $10.01million.
The plaintiff alleges that STEC falsely stated during June 16, 2009 and November 3, 2009 that its purported success was the result of the successful adaptation and use of STEC's ZeusIOPS products by EMC, IBM, or Sun Microsystems, when, in fact, IBM and Sun Microsystems were having significant difficulties integrating STEC's products.
On November 3, 2009, STEC Inc. 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. Shares of STEC declined $9.01 per share, more than 38%, to close on November 4, 2009, at $14.14 per share and the plaintiff alleges that as a result of defendants’ false and misleading statements, STEC stock traded at artificially inflated prices reaching a high of $41.84 per share on September 10, 2009.
In April 2010 a consolidated complaint was filed and in August 2010 a first amended consolidated complaint against the defendants was filed.
Those who purchased STEC, Inc. (Public, NASDAQ:STEC)
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