Feeds

Flash-pusher sTec coughs $36m to settle class action suit

That's a whole quarter's worth of revenue

The essential guide to IT transformation

Flash storage supplier sTec is paying more than its latest quarter's revenue to settle a class action lawsuit.

The settlement fee is $35.8m. sTec earned $35.135m in revenue in its last quarter. The lawsuit concerned allegations that STEC, as it then called itself, had given an "inflated impression" of STEC’s revenue growth and of conditions before a share price drop. The terms of the settlement stipulate that all claims against the flash storage pioneer are settled and no "admission or concession of wrongdoing" is made by the firm or the other defendants.

The latest STEC earnings call included this statement:

On July 30, 2012, the parties to the previously disclosed federal class action filed against the Company and several of its senior officers and directors in the United States District Court for the Central District of California attended a mediation to explore a potential settlement.

During the mediation, the parties considered a settlement that would create a fund for the benefit of the settlement class, with no admission or concession of wrongdoing by the Company or any other defendants, in exchange for a full and complete release of all claims that were or could have been asserted in the federal class action.

... The Company has revised its assessment of this loss contingency and estimates the range of probable loss for the federal class action to be between $34m and $36m...

The Company has recorded the estimated settlement loss and related estimated insurance recoveries in other (expense) income in the accompanying statement of operations resulting in a net charge of $15 million for the second quarter ended June 30, 2012.

Job done then, and one less millstone around sTec's neck as it tries to rebuild its business fortunes. Law360 has more details (subscription or free trial sign-up needed). ®

Next gen security for virtualised datacentres

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?