San Diego, CA -- (SBWIRE) -- 06/20/2012 -- An investigation on behalf of investors in STEC, Inc. (NASDAQ:STEC) shares over potential securities laws violations by certain officers and directors at STEC, Inc. in connection with the secondary offering on August 3, 2009.
Investors who purchased shares of STEC, Inc. (NASDAQ:STEC) on August 3, 2009 or shortly after August 3, 2009, still have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of STEC, Inc. (NASDAQ:STEC) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements about STEC’s secondary offering on August 3, 2009 were potentially materially false and misleading at the time they were made.
STEC, Inc. reported an increase in its annual revenue from $227.44million in 2008 to $354.18million in 2009 and its Net Income surged from $4.29million in 2008 to $72.61million in 2009.
On July 16, 2009, STEC issued a press release entitled “STEC Signs a $120 Million Supply Agreement for ZeusIOPS SSDs for 2H 2009 and Now Forecasts Sales of ZeusIOPS SSDs to Exceed $220 Million in 2009”.
Shares of STEC, Inc. (NASDAQ:STEC) rose from $4.37 per share in early 2009 to $34.09 per share in late July 2009.
Then on August 3, 2009, STEC, Inc conducted a secondary stock offering.
Shares of STEC, Inc. (NASDAQ:STEC) increased to as high as $41.30 per share on September 11, 2009.
Then on November 3, 2009, STEC Inc. had 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.
NASDAQ:STEC shares fell to as low as $11.44 per share in December 2011.
STEC, Inc. reported that its annual Revenue fell from $354.18million in 2009 to $280.15million in 2010 and its Net Income decreased from $72.61million in ’09 to $28.54million in 2010.
Despite an increase in its annual Revenue from 2010 to $308.06million in 211 its Net Income continued to decline to $25.10million in 2011.
Shares of STEC, Inc. (NASDAQ:STEC) declined to as low as $8.59 per share in the end of 2011.
In early June 2012 NASDAQ:STEC shares fell under $7 per share and closed on June 19, 2012 at $7.62 per share.
Those who purchased shares of STEC, Inc. (NASDAQ:STEC) on August 3, 2009 or shortly after August 3, 2009, still have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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