If you purchased STEC, Inc. (Public, NASDAQ:STEC)
According to the complaint the plaintiff alleges that STEC, Inc and certain of its officers and directors violated the Securities Act of 1933 by issuing false and misleading misstatements and omissions within the August 3, 2009 Offering. The lawsuit follows a lawsuit filed in 2009 by investors in STEC, who purchased their STEC shares between June 16, 2009 and February 23, 2010. The investors in that lawsuit allege that STEC and certain of its executive officers violated Federal Securities Laws between June 16, 2009 and February 23, 2010 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.
Those who purchased STEC, Inc. (Public, NASDAQ:STEC)
# # #
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.