Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against OCZ Technology Group, Inc.
October 15, 2012
Bernstein Liebhard 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 a class (the “Class”) of purchasers of OCZ Technology Group, Inc. (“OCZ” or the “Company”) (NASDAQ:OCZ) common stock and/or call options, or investors who sold OCZ put options, between July 10, 2012 and October 10, 2012, inclusive (the “Class Period”).
OCZ engages in the design, manufacture and distribution of high-performance solid-state storage solutions and premium computer components. The Complaint alleges that throughout the Class Period the Company and certain of its executive officers made false and/or misleading statements and/or failed to disclose that: (1) the Company was providing extraordinary customer incentives in excess of what was normal and customary in the past; (2) the Company was improperly accounting for customer incentive programs; (3) as a result, the Company’s financial results were misstated during the Class Period; (4) the Company lacked adequate internal and financial controls; (5) as a result, defendants’ statements were materially false and misleading; and (6) as a result of the foregoing, defendants’ positive statements about OCZ’s business, operations and prospects lacked a reasonable basis.
On September 5, 2012, the Company announced that for the 2013 fiscal second quarter, which ended on August 31, 2012, it expected preliminary revenue to be approximately $110 to $120 million, compared to the previously guided revenue range of $130 to $140 million.
Then, on October 10, 2012 the Company announced that it will file a Form 12b-25 Notification of Late Filing with the SEC, to extend the deadline to file OCZ’s second quarter 2013 financial results. According to the Company, OCZ’s second quarter 2013 “revenue will be materially lower than the September 5 preliminary revenue range of $110 to $120 million…principally due to the impact of customer incentive programs which were discovered subsequent to the preliminary announcement during the normal close process, and which the Company will be reporting as a material weakness in its Form 10-Q.” Moreover, the Company “also expects to report negative gross margins and a significant net loss” for second quarter 2013.
On this news, the Company’s shares declined $1.27 per share, or more than 40%, to close on October 10, 2012 at $1.88 per share on unusually heavy volume.
Plaintiffs seek to recover damages on behalf of all Class members who invested in OCZ securities during the Class Period. If you invested in OCZ securities as described above during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than December 10, 2012.
A “lead plaintiff” is a representative party that acts 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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Northern District of California.