... Investigation on Behalf of Shareholders of STEC

Law Offices of Howard G. Smith is investigating potential claims against STEC, Inc., concerning possible securities violations in relation to public statements made by the Company between August 3, 2009 and November 3, 2009. The investigation focuses on allegations that statements made by the Company during that period regarding STEC’s business, operations, and prospects, were false and misleading.

On November 3, 2009, the Company announced that one of its largest customers, which accounts for 90 percent of STEC’s Zeus IOPS 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. On this news, shares of STEC declined $9.01 per share, nearly 39%, to close on November 4, 2009, at $14.14 per share, on unusually heavy volume.

Comments

It's always the same process in U.S.A. When a firm is successful or big enough - which means that it has good financial resources -, some U.S. lawyers try to find some mistakes in the communication of the company to begin an investigation and attract shareholders to follow them. They are never interested in poor public companies.They pretend to protect shareholders but the goal of their action, supposed to be based on the morality of the business, is just to try destroy it and to make money. You can apply the same opinion of curious companies with activities based on patent litigation.

Here are some recent cases
concerning the storage companies:

Kendall Law Group Files a Complaint vs. Data Domain and NetApp
Since the board of Data Domain has refused a $30 per share all cash offer from EMC

One More Lawsuit Against Directors of Data Domain
This time by law firms Bernstein Litowitz Berger & Grossmann, and Grant & Eisenhofer

The Law Firm of Brodsky & Smith Investigates Data Domain Acquisition by NetApp...
For breaches of fiduciary duty and other violations of state law by the board of Data Domain

... As Well As The Law Firm of Levi & Korsinsky
For the same reasons

Class Action Lawsuit Against Iomega
Concerning its acquisition by EMC

Class Action Against Isilon
By the law firm Cohen, Milstein, Hausfeld & Toll, P.L.L.C

… Investigation on Behalf of Shareholders of STEC

By Law Offices of Howard G. Smith

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