Lieff Cabraser Announces Class Action Lawsuits Against OCZ Technology Group, Inc.
SAN FRANCISCO--(BUSINESS WIRE)-- The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action lawsuits have been brought on behalf of all persons or entities who purchased the securities of OCZ Technology Group, Inc. ("OCZ" or the "Company") (NAS: OCZ) between July 10, 2012 and October 11, 2012, inclusive (the "Class Period").
If you purchased OCZ securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than December 10, 2012. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
OCZ shareholders who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon Lee of Lieff Cabraser toll-free at 1 (800) 541-7358.
The complaints charge OCZ and certain of its senior executives with violations of the Securities Exchange Act of 1934. OCZ is a California-based company that designs, manufactures, and distributes solid state drives (SSDs) and related computer components.
The complaints allege that, throughout the Class Period, defendants issued false and misleading statements regarding OCZ's business, operational, and accounting practices and financial results. Specifically, defendants failed to disclose (i) that OCZ's accounting for customer incentive programs was improper and misleading, (ii) that the Company lacked adequate internal and financial controls, and (iii) that, as a result of the foregoing, OCZ's financial statements and projections regarding its business prospects during the Class Period lacked any reasonable basis in fact.
On September 5, 2012, OCZ significantly lowered its revenue forecast for the second fiscal quarter of 2013 to between $110 million and $120 million, from earlier estimates of between $130 million and $140 million. Defendants attributed the lowered guidance to supply constraints. Following this announcement, the price of OCZ common stock fell $1.01 per share, or more than 20%, to close at $4.35 on September 6, 2012.
On October 10, 2012, OCZ announced that it was unable to file its Form 10-Q for the second fiscal quarter of 2013 in a timely manner. The Company also disclosed that its revenue for the quarter would be materially lower than the $110 million to $120 million guidance provided on September 5, 2012, and that it now expected to report negative gross margins and a significant net loss for the quarter. Defendants attributed the revised revenue estimate and filing delay to the impact of customer incentive programs which defendants had promised OCZ's customers in order to bring in business. On this news, OCZ's stock price fell $1.27 per share, or approximately 40%, to close at $1.88.
Then, on October 11, 2012, defendants disclosed that OCZ required "additional time for compilation and review to insure adequate disclosure of certain information" and that "the Company [could not] currently estimate the exact filing date of the Form 10-Q for the quarter ended August 31, 2012." On this news, OCZ's stock price fell approximately 3% to close at $1.47 per share on October 12, 2012.
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs' law firms in the United States to receive this honor for the last ten consecutive years.
For more information about Lieff Cabraser and the firm's representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
for Media Inquiries Only:
Lieff Cabraser Heimann & Bernstein, LLP
Sharon M. Lee, 800-541-7358
KEYWORDS: United States North America California
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