Announcement of Saxena White, Representing Stec Shareholders

Saxena White P.A. reminds all purchasers of STEC, Inc. securities between June 16, 2009 and November 3, 2009, inclusive, that January 5, 2010 is the lead plaintiff deadline in the class action currently pending in the United States District Court for the Central District of California.

Contrary to the positive statements made by Defendants during the Class Period, on November 3, 2009 Defendants revealed that STEC would come nowhere near achieving guidance previously offered by the Company. According to the filed complaint, STEC’s largest customer, EMC, which accounted for at least 90% of its ZIOS solid state drives, had so much excess inventory from the second and third quarters of 2009 that it would be impossible for the Company to meet earnings expectations for the third and fourth quarters of 2009. In addition, STEC revealed that it would probably be well into 2010 before EMC could work off the excess inventory.

The following day, on November 4, 2009, STEC’s stock price collapsed over 30% to close at just above $14.14 per share on volume of over 32 million shares, many times the average daily trading volume of STEC’s stock. According to the filed complaint, the statements made by Defendants during the Class Period had the effect of artificially inflating STEC’s stock price, which enabled certain of the Company’s executives, including Defendants Manouch Moshayedi and Mark Moshayedi, to sell 9 million of their personal shares for proceeds of approximately $300 million in a secondary public offering held on August 5, 2009.

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Fifth Class Action vs. Stec
By Saxena White P.A.