BOSTON, Oct. 17, 2012 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com) and Cotchett, Pitre & McCarthy, LLP (www.cpmlegal.com), announce that they filed a class action lawsuit against OCZ Technology Group Inc. (Nasdaq:OCZ) ("OCZ" or the "Company"). OCZ's former CEO, Ryan M. Peterson, and its CFO, Arthur F. Knapp, are also named as defendants. The lawsuit, captioned Leang v. OCZ Technology Group Inc. et al., Case No. 12-cv-05329, is pending in the United States District Court for the Northern District of California.
The lawsuit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, on behalf of investors who purchased or otherwise acquired OCZ's common stock from July 10, 2012 through October 10, 2012 (the "Class Period").
On Wednesday, October 10, 2012, the Company issued a press release announcing that its financial results for the second quarter of fiscal year 2013, which ended August 31, 2012, would be delayed. The press release also disclosed that the Company's second quarter revenue will be "materially lower" than its previous guidance released on September 5, 2012, which was in the range of $110 to $120 million, "principally due to the impact of customer incentive programs," and that the Company expects to report a "significant net loss."
The complaint asserts that OCZ, through its officers and directors, made false and misleading statements and omissions regarding the Company's internal financial controls and its accounting for certain customer incentive programs. These statements are alleged to have been false and misleading when made because: (i) the Company was suffering from grossly deficient internal controls and therefore was susceptible to accounting fraud; (ii) Defendants failed to disclose the true nature of the customer incentive programs and the associated accounting irregularities; (iii) the Company's financial statements were inaccurate in numerous material respects; and (iv) Defendants failed to disclose the risks that the lack of internal controls and improper accounting of payments posed to Company revenue.
Shortly after the release of this news, shares of OCZ dropped over 50 percent from a close of $3.15 on October 9, 2012 to close at $1.47 per share on October 12, 2012.
If you are a member of the Class, you may, no later than December 10, 2012, request that the court appoint you as Lead Plaintiff for the Class. You may contact the attorneys at Block & Leviton to discuss your rights in the case. You may also retain counsel of your choice and you need not take any action at this time to be a class member. If you have any questions regarding your rights related to this action or have information relevant to the claims asserted in the complaint, please contact attorney Steven Harte of Block & Leviton LLP at (617) 398-5600 or email@example.com
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Source:Block & Leviton LLP