Feeds

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

That's a whole quarter's worth of revenue

Top three mobile application threats

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). ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.