Securities fraud class action filed on behalf of a class of persons and entities who purchased or otherwise acquired the common stock of STEC, Inc. ("STEC" or the "Company") between June 16, 2009 and February 23, 2010 (the "Class Period"), and were damaged thereby.
By Orders dated January 21, 2010, and March 26, 2010, the Court consolidated actions relating to Defendants' alleged materially false and misleading statements and omissions regarding the sales, demand and competition for STEC's products. By Order dated February 8, 2010, the Court appointed Keith A. Ovitt and Arman Rashtchi as the Lead Plaintiffs over the consolidated action and BLB&G as co-Lead Counsel for the Class.
On April 9, 2010, Lead Plaintiffs Ovitt and Rashtchi filed a consolidated class action complaint in the consolidated action based upon information obtained through Lead Counsel's extensive investigation and analysis.
On July 14, 2010, the Court entered an order appointing a new lead plaintiff. Ovitt and Rashtchi have filed a motion for interlocutory appeal of the order which is currently under submission.
STEC designs, develops, manufactures and markets enterprise-class flash solid-state drives ("SSDs") used in computer storage systems and servers. The consolidated complaint alleges that throughout the Class Period, defendants made materially false statements and omissions regarding the sales, demand and competition for STEC's products. Defendants' misrepresentations and omissions during the Class Period artificially inflated the price of STEC's stock and enabled defendants Manouch and Mark Moshayedi, STEC's Chief Executive Officer and Chief Operating Officer, respectively, to sell a combined total of 9 million shares of STEC stock for personal proceeds in excess of $267 million. When the truth about STEC's sales, demand and competition began to be revealed to investors and analysts through a series of corrective disclosures beginning on September 17, 2009, the price of STEC's stock plummeted, causing substantial damage to the Class.
