Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against OCZ Technology Group
Robbins Geller Rudman & Dowd LLP today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of OCZ Technology Group, Inc. (“OCZ”) (NYSE: OCZ) common stock during the period between July 10, 2012 and October 11, 2012 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from October 11, 2012. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Darren Robbins of Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/ocz/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges OCZ and certain of its officers and directors with violations of the Securities Exchange Act of 1934. OCZ designs, manufactures, and distributes Solid-State Drives and related computer components.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business practices and financial results. Specifically, defendants failed to disclose that the Company's sales trends were not as robust as they had stated, and that in order to address those negative trends in OCZ's business, defendants were promising to pay customers “incentives” (i.e., rebates) in order to obtain sales, rendering their statements concerning OCZ's financial results materially false and misleading. As a result of these false statements, OCZ's stock traded at artificially inflated prices during the Class Period, reaching a high of $7.67 per share in intraday trading on July 30, 2012.
On September 5, 2012, defendants reported that revenue for the second quarter of 2013 (ended August 31, 2012) would be in the $110 to $120 million range instead of the $130 to $140 million range projected on July 10, 2012, causing OCZ's stock price to decline approximately $1 per share, or more than 20%. Defendants attributed the downward guidance revision to supply constraints, stating demand for the Company's product offerings had simply overwhelmed available supply.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.