… Seventh Investigation of OCZ …

Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the securities of OCZ Technology Group, Inc.  between July 10, 2012 and October 10, 2012, inclusive, alleging violations of the Securities Exchange Act of 1934 against the company, certain of its officers and directors.

OCZ, a Delaware corporation headquartered in San Jose, CA, designs, manufactures, and distributes high performance and reliable Solid-State Drives and premium computer components.

The complaint alleges that throughout the class period, defendants made materially false and misleading statements regarding the company’s business operations, financial condition and prospects.

Specifically, the complaint alleges
that the defendants failed to disclose that:

• the company was providing extraordinary customer incentives in excess of what was normal and customary in the past;
• the company was improperly accounting for customer incentive programs;
• as a result, the company’s financial results were misstated during the class period;
• the company lacked adequate internal and financial controls;
• as a result, the Defendants’ statements were materially false and misleading; and
• as a result of the foregoing, the Defendants’ positive statements about OCZ’s business, operations, and prospects lacked a reasonable basis.

As a result of defendants’ false and misleading statements, the company’s stock traded at artificially inflated prices during the class period.

According to the complaint, on September 5, 2012, the company announced that it expected preliminary revenue for the second fiscal quarter of 2013 to be approximately $110 to $120 million, compared to the previously stated outlook of $130 to $140 million. On this news, shares in OCZ declined over 18%, from a close of $5.36 per share on September 5, 2012 to $4.35 per share on September 6, 2012, on volume of over 22 million shares.

In a press release dated October 10, 2012, OCZ announced it was filing a Notification of Late Filing with the SEC regarding its second fiscal quarter earnings and that second fiscal quarter revenue “will be materially lower than the September 5th preliminary range of $110 to $120 million.”

Additionally, the company indicated that it “also expects to report negative gross margins and a significant net loss” for that same quarter.

On this news, share in OCZ declined over 40%, from a close of $3.15 per share on October 9, 2012 to $1.88 per share on October 10, 2012, on volume of over 23 million shares.