Welcome to the In re STEC, Inc.
Securities Litigation Settlement Website
You may be entitled to a payment from this class action settlement if you:
purchased or otherwise acquired the publicly traded common stock of STEC, Inc. (“STEC” or the “Company”) during the period from June 16, 2009 to February 23, 2010, inclusive (the “Class Period”), and were allegedly damaged thereby ("the Class").
The purpose of this Website is to inform you of the class action settlement.
The operative complaint in the Action is the Third Amended Consolidated Complaint (the “Complaint”). The Complaint generally alleges, among other things, that Defendants violated Sections 10(b), 20(a), and 20A of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 promulgated thereunder by making alleged 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 even acceleration of that growth. The Complaint also alleges that Defendants violated Sections 11, 12, and 15 of the Securities Act of 1933 (“Securities Act”) 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 (“Secondary Offering”). The Complaint alleges that Plaintiffs and other Class Members purchased or acquired the publicly traded common stock of STEC during the Class Period at artificially inflated prices and were damaged thereby.
On March 22, 2011, Defendants filed motions to dismiss the Second Amended Consolidated Complaint, which Plaintiffs opposed on April 25, 2011. On May 16, 2011, Defendants filed reply briefs in further support of their motions. On June 17, 2011, the Court partially denied and partially granted Defendants’ motions to dismiss. The Court denied the motions with respect to the claims under the Exchange Act but granted the motions with respect to the claims under the Securities Act.
Discovery commenced in October 2011, including the production of documents by Defendants and third parties, which resulted in the production of over two million pages of documents. Co-Lead Counsel deposed over twenty-five witnesses including Defendants and certain of their employees, and various third parties, including customers of STEC and securities analysts who covered STEC during the Class Period. Defendants deposed six witnesses, including two of the three Plaintiffs. Additionally, Defendants served Lead Plaintiff with Interrogatory Requests to which Lead Plaintiff responded. The Parties also exchanged expert reports.
On November 21, 2011, Plaintiffs moved to certify a litigation class in the Action which Defendants opposed on January 12, 2012. The Court denied the motion on March 7, 2012 on the ground that Plaintiffs did not have standing to bring claims under the Securities Act. Plaintiffs petitioned the Ninth Circuit pursuant to Rule 23(f) to reverse the denial of class certification, which petition was denied on June 14, 2012. On May 25, 2012, Plaintiffs, with the Court’s permission, filed a supplemental memorandum of law in further support of their motion for class certification informing the Court that they could not find a class representative with standing to bring the Securities Act claims. On June 19, 2012, the Court certified the Class for the claims under the Exchange Act and appointed Lead Plaintiff and Local 103 as class representatives. The Court also appointed Co-Lead Counsel and Liaison Counsel as joint lead counsel for the Class pursuant to Rule 23(g). STEC petitioned the Ninth Circuit pursuant to Rule 23(f) to reverse the grant of class certification, which petition was denied on September 6, 2012.
On June 11, 2012, the Court set trial to begin on November 6, 2012.
In January 2012, Plaintiffs and Defendants engaged in a mediation with the assistance of an experienced mediator, the Honorable Layn R. Phillips (Ret.) (“Judge Phillips”). This initial discussion did not result in a resolution of the Action. Later, after the Court’s Order certifying the Class for Plaintiffs’ claims under the Exchange Act and after the Parties had engaged in extensive discovery, Plaintiffs and Defendants renewed their discussions, with the assistance of Judge Phillips. This discussion did not result in a resolution of the Action. In August 2012, Mark Ripperda, who purchased STEC securities pursuant or traceable to the registration statement and/or the prospectus issued in connection with the Secondary Offering, agreed to serve as a Class Representative and retained separate counsel. In September 2012, the Parties, including Mr. Ripperda’s counsel, renewed their discussions, with the assistance of Judge Phillips. Following lengthy, arm’s-length, and mediation negotiations, the Parties reached an agreement in principle to settle the claims against Defendants, resulting in the Memorandum of Understanding (“MOU”) entered into on September 11, 2012.
The Action seeks money damages against Defendants for alleged violations of the federal securities laws. Defendants deny all allegations of misconduct contained in the Complaint, and deny having engaged in any wrongdoing whatsoever. The Settlement should not be construed or seen as evidence of or an admission or concession on the part of any Defendant with respect to any claim or of any fault or liability or wrongdoing or damage whatsoever, or any infirmity or weakness in the defenses that Defendants have asserted.
|YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT|
|SUBMIT A CLAIM FORM BY JUNE 25, 2013||The only way to get a payment.|
|EXCLUDE YOURSELF BY APRIL 22, 2013||Get no payment. This is the only option that allows you to ever bring or be part of any other lawsuit about the Released Claims against Defendants and the other Released Defendant Parties.|
|OBJECT BY APRIL 22, 2013||Write to the Court about why you do not like the Settlement, the proposed Plan of Allocation and/or the request for attorneys’ fees and reimbursement of expenses. You will still be a member of the Class.|
|GO TO A HEARING ON MAY 20, 2013||Ask to speak in Court about the Settlement at the Settlement Hearing.|
|DO NOTHING||Get no payment. Give up rights.|