Cohen Milstein Sellers & Toll PLLC Announces the Investigation of OCZ Technology Group, Inc.
Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether OCZ Technology Group, Inc. (“OCZ” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Several class action lawsuits were filed in the U.S. District Court for the Northern District of California by other law firms on behalf of purchasers of the common stock of OCZ Technology Group, Inc. (NASDAQ: OCZ) between July 10, 2012 and October 11, 2012, inclusive (the “Class Period”).
The complaints allege that OCZ Technology Group, Inc. and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) OCZ was providing extraordinary customer incentives in excess of what was normal and customary in the past; (2) OCZ was improperly accounting for customer incentive programs; (3) the Company's financial results were misstated during the Class Period; (4) OCZ lacked adequate internal and financial controls; and (5) as a result of the foregoing, Defendants' positive statements about OCZ's business, operations and prospects lacked a reasonable basis.
On September 5, 2012, OCZ reported preliminary revenues for the second fiscal quarter that were significantly lower than previously announced guidance. Defendant Ryan M. Petersen, then President and CEO of OCZ, told investors that the financial shortfall was primarily due to product-component shortages. Less than two weeks later, on September 17, the Company announced that defendant Petersen had resigned, offering no explanation for his abrupt departure.
On October 10, OCZ announced that it was seeking an extension of time to file its second quarter Form 10-Q, telling investors that its financial statements were “under review” and warning that the preliminary revenue results announced on September 5 should not be relied upon. The company further disclosed that there would be “material changes [to revenue estimates] due to customer incentives that were in excess of what was normal and customary in the past.” The price of OCZ shares dropped from $3.15 to $1.88 on this news.
On October 11, the last day of the Class Period, OCZ filed a Form NT 10-Q disclosing a further delay in filing its second quarter Form 10-Q. The Company reported that it “cannot currently estimate the exact filing [date]…as it requires additional time to complete the accounting review concerning the impact of its customer incentive programs on its financials.” The price of OCZ shares fell from $1.86 to $1.47 on October 12.
Cohen Milstein encourages all investors who purchased OCZ common stock between July 10, 2012 and October 11, 2012 or former employees with information concerning this matter to contact the firm.
If you are an OCZ shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at email@example.com. If you wish to serve as lead plaintiff, you must move the Court no later than December 10, 2012 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach Gardens, and is active in major litigation pending in federal and state courts throughout the nation.
The firm's reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: firstname.lastname@example.org; email@example.com