Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against OCZ Technology Group, Inc.
WILMINGTON, Del.--(BUSINESS WIRE)-- Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the securities of OCZ Technology Group, Inc. ("OCZ" or the "Company") (NASDAQ CM: OCZ) between July 10, 2012 and October 10, 2012, inclusive, (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company, certain of its officers and directors (the "Complaint").
If you purchased shares of OCZ during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to email@example.com, or at: http://www.rigrodskylong.com/investigations/ocz-technology-group-inc-ocz.
OCZ, a Delaware corporation headquartered in San Jose, California, designs, manufactures, and distributes high performance and reliable Solid-State Drives and premium computer components. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business operations, financial condition and prospects. Specifically, the Complaint alleges that the defendants failed to disclose : (1) that the Company was providing extraordinary customer incentives in excess of what was normal and customary in the past; (2) that the Company was improperly accounting for customer incentive programs; (3) that, as a result, the Company's financial results were misstated during the Class Period; (4) that the Company lacked adequate internal and financial controls; (5) that, as a result, the Defendants' statements were materially false and misleading; and (6) that, as a result of the foregoing, the Defendants' positive statements about OCZ's business, operations, and prospects lacked a reasonable basis. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on September 5, 2012, the Company announced that it expected preliminary revenue for the second fiscal quarter of 2013 to be approximately $110 to $120 million, compared to the previously stated outlook of $130 to $140 million. On this news, shares in OCZ declined over 18%, from a close of $5.36 per share on September 5, 2012 to $4.35 per share on September 6, 2012, on volume of over 22 million shares.
In a press release dated October 10, 2012, OCZ announced it was filing a Notification of Late Filing with the Securities and Exchange Commission regarding its second fiscal quarter earnings and that second fiscal quarter revenue "will be materially lower than the September 5th preliminary range of $110 to $120 million." Additionally, the Company indicated that it "also expects to report negative gross margins and a significant net loss" for that same quarter. On this news, share in OCZ declined over 40%, from a close of $3.15 per share on October 9, 2012 to $1.88 per share on October 10, 2012, on volume of over 23 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than December 10, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed 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.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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KEYWORDS: United States North America Delaware
The article Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against OCZ Technology Group, Inc. originally appeared on Fool.com.
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