STEC Inc. Spins and is Spun Back in My Inbox

Categories: Court
STEC_Logo.jpg
I swear I am not making this up: Last week, I received two emails, one immediately followed by the other in my inbox, concerning STEC Inc., the Santa Ana-based multinational company that creates solid state drive technologies and products.

The photographic proof follows after the jump . . .

See also:
Farzin Bazshushtari, Data Storage Maker's Sale Director, Accused of Insider Trading
Five Songs About Technology Gone Horribly Awry
The Stock Detective: Who knows what evil lurks in the hearts of online stock tipsters?

My inbox:

stec-inc.jpg
The bottom item on Oct. 29, slugged "STEC, Inc.," arrived first. It's about the company's Linux driver for its PCI Express solid state drives now being open-source and how STEC would showcase its "latest SSD solutions" at SNW Europe in Frankfurt, Germany, Oct. 30-31.

Yes, folks, I do gets me some exciting emails!

But that one was immediately followed by an email from Greenfield & Goodman, LLC, a Maryland public accounting and business consulting firm, and Cuneo Gilbert & LaDuca, LLP, a Washington, D.C. law firm. They announced that, on behalf of a stock buyer, they are suing STEC in federal court for hiding key facts before the man's purchase.

Specifically, the suit accuses brothers Manouchehr and Mehrdad Moshayedi, who are STEC's CEO and president/COO respectively, and other officers and executives of violating the Securities and Exchange Act, breach of fiduciary duty "and other serious wrongdoing." False financial and accounting information was disseminated to potential stock buyers, according to the complaint, which further alleges the Moshayedis sold shares owned by them or trusts they controlled for nearly $400 million in the past few years "while in possession of material information not disclosed to the public."

The complaint notes the Securities and Exchange Commission has since sued Manouchehr Moshayedi.

We here are the Weekly are used to corporate PR types trying to spin us for their clients, but I can't recall such a serious spin back so quickly.

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