… Eighth Investigation of OCZ …

Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against OCZ Technology Group, Inc. and certain of its officers.

The class action (C12-05296-EMC), filed in United States District Court, Northern District of California, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired the common stock of OCZ between July 11, 2012 and October 11, 2012, inclusive. This class action seeks to recover damages caused by OCZ Technology’s violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder.

OCZ designs, manufactures, and distributes enterprise and consumer solid drives. The company also offers power management and memory solutions utilized in computing, industrial, multimedia editing and entertainment performance computing.

The complaint alleges that throughout the class period, the company made false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects.

Specifically, Defendants made false
and/or misleading statements
and/or failed to disclose that:

• the company was providing extraordinary customer incentives to its customers, which impacted its revenue recognition;
• the company was improperly accounting for customer incentive programs;
• the company lacked adequate internal and financial controls; and
• that, as a result of the foregoing, the company’s statements were materially false and misleading at all relevant times.

On September 5, 2012, the company announced that its preliminary revenues for the 2013 fiscal second quarter ended on August 31, 2012, were $110 to $120 million compared to its previously announced guidance of $130 million to $140 million. On this news, OCZ shares declined $1.01 per share, or nearly 19%, to close at $4.35 per share on September 6, 2012.

On September 17, 2012, the company announced the resignation of Ryan M. Petersen as president, CEO and a director of the company.

On this news, OCZ shares declined $0.33 per share or more than 7%, to close at $4.13 per share on September 18, 2012.

On October 10, 2012, the company disclosed the filing of an extension to file its Form 10-Q for the second quarter of fiscal year 2013. The company also disclosed that revenue for the second quarter "will be materially lower than the September 5th preliminary revenue range of $110 to $120 million" due to the impact of its customer incentive programs. On these revelations, OCZ shares declined $1.27 per share or over 40%, to close at $1.88 per share, on October 10, 2012.

On October 11, 2012, the company filed a Form NT 10-Q with the SEC disclosing that "the company cannot currently estimate the exact filing of the Form 10-Q for the quarter ended August 31, 2012" as it requires additional time to complete the accounting review concerning its customer incentive programs.

On this news, OCZ shares declined an additional $0.39 or nearly 21%, to close at $1.47 per share on October 12, 2012.