Settled: May 28, 2013
On May 28, 2013, the Honorable James V. Selna of the United States District Court for the Central District of California entered final approval to a settlement in the class action, In re STEC, Inc. Securities Litigation, SACV 09-01304-JVS (MLGx). The settlement resolves all claims in the action against STEC, Inc. (STEC) and the Individual Defendants, Manouch Moshayedi, Mark Moshayedi and Raymond Cook (collectively, the defendants), in exchange for a payment in the amount of $35.75 million in cash, plus interest.
Labaton Sucharow and Lite DePalma Greenberg, LLC are the court-appointed co-lead counsel.
The lead plaintiff, the State of New Jersey, Department of Treasury, Division of Investment along with the plaintiffs, International Brotherhood of Electrical Workers, Local 103 and the Norfolk County Retirement System (together with lead plaintiff , the plaintiffs), and plaintiff Mark Ripperda represent the Class.
The lead plaintiff, on behalf of the class, alleges that Defendants made misstatements and omissions during the class period that created an inflated impression of STEC's revenue growth and of conditions that supposedly ensured a near and long term continuation and acceleration of that growth, in violation of Sections 10(b), 20(a), and 20A of the Securities Exchange Act of 1934 and rule 10b-5 promulgated thereunder. Lead plaintiff also alleges that the defendants violated Sections11, 12 and 15 of the Securities Act of 1933 by making alleged misstatements and omissions in STEC's registration statement and/or prospectus in connection with the August 3, 2009 secondary offering of STEC stock.
If you purchased or otherwise acquired the publicly traded common stock of STEC from June 16, 2009 to February 23, 2010, inclusive (the class period), and were allegedly damaged thereby, you may be eligible to recover if you submit a Proof of Claim with supporting documents by June 25, 2013.
A settlement hearing was held on May 20, 2013, at 1:30 p.m. before Judge Selna in Courtroom 10C of the United States District Court for the Central District of California, Southern Division, in the Ronald Reagan Federal Building and U.S Courthouse.The deadline for objecting to the settlement or for seeking exclusion from the Class has passed.
A copy of the relevant settlement documents can be accessed by clicking on the links to the right.