Two More Class Actions Vs. Stec…

Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of a class consisting of all persons or entities who purchased the securities of STEC, Inc. between August 3, 2009 and November 3, 2009, inclusive.

The Complaint charges STEC and certain of the Company’s executive officers with violations of federal securities laws. STEC designs, manufactures and markets enterprise-class solid state drives, for use in high performance storage and server systems, and high density dynamic random access memory, modules for networking, communications and industrial applications. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning STEC’s business, operations and prospects were materially false and misleading.

Specifically, the defendants made
false and/or misleading statements
and/or failed to disclose:

1. that the Company over sold its largest customer more inventory than it required;
2. that, as such, the Company overstated the demand for its ZeusIOPS SSD products;
3. that the Company’s subsequent revenue and financial results for the following year would be negatively impacted; and
4. that, as a result of the above, Defendants’ statements during the Class Period lacked a reasonable basis.

On November 3, 2009, STEC shocked investors when it announced that one of its largest customers, which accounts for 90 percent of STEC’s ZeusIOPS 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. As a result of this news, shares of STEC declined $9.01 per share, more than 38%, to close on November 4, 2009, at $14.14 per share, on unusually heavy volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.