Stec CEO Moshayedi Files Judicial Answer for Insider Trading

STEC, Inc. announced that its chairman and CEO, Manouch Moshayedi, has filed his answer in response to the United States Securities and Exchange Commission (SEC) civil complaint filed last month.

His answer was filed in the United States District Court for the Central District of California.

"As my answer shows, I pursued a sale of shares through a public offering at significant additional cost to me in order to establish a more transparent and orderly process, which also protected STEC and its shareholders from large and unexplained piecemeal sales that would have been triggered under my pre-existing 10b5-1 plan as the company’s stock rose rapidly," said Mr. Moshayedi. "The answer also explains that I could not have known at the time of the stock offering the two key ‘facts’ on which the SEC’s case largely rests.

"I am proud of my accomplishments and of the company I founded more than 22 years ago. I cannot let the SEC’s unjustified claims damage my reputation or that of STEC. The answer filed yesterday is the first step in my defense, and my quick and thorough response to the SEC’s complaint shows my intent to contest it vigorously. I remain confident that my position will be supported by the evidence."

Kevin C. Daly, Ph.D., the company’s lead independent director, said: "STEC’s board of directors unanimously supports Manouch’s defense against the SEC complaint, whose allegations in our judgment are without merit. Manouch is as committed as ever to STEC providing enterprise-class solid-state drive solutions to our customers and to growing the company, and we support that mission 100 percent."

Full text of the answer

Read also:
SEC Charges Stec Chairman and CEO Manouch Moshayedi
With insider trading