Ninth Class Action Vs. Stec

Brower Piven, a professional corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of purchasers of the common stock of STEC, Inc. during the period between June 16, 2009 and November 3, 2009, inclusive.

It encourages investors who have losses in excess of $500,000 from investment in STEC, Inc. to inquire about the lead plaintiff position in securities fraud class action lawsuit before the January 5, 2010 lead plaintiff deadline.

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than January 5, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Act of 1933 by virtue of misleading statement to investors in its offering documents (registration statement and prospectus) for its secondary offering of Company stock to investors on or about August 6, 2009 and the Securities Exchange Act of 1934 by falsely stating during the Class Period that the Company’s purported success was the result of the successful adaptation and use of STEC’s ZeusIOPS products by EMC, IBM, or Sun Microsystems, when, in fact, IBM and Sun Microsystems were having significant difficulties integrating STEC’s products, and by virtue of the Company’s failure to disclose during the Class Period that the Company over sold its largest customer, ECM, more inventory than it required and thus overstated the demand for its ZeusIOPS SSD products such that the Company’s subsequent revenue and financial results for the following year would be materially negatively impacted.

According to the complaint, on November 3, 2009, after STEC shocked investors when it announced that EMC’s $120 million order for the second half of 2009 would carry EMC’s 2009 inventory needs into 2010, thus placing STEC’s 2010 first quarter results at risk, STEC’s stock declined significantly.