Feeds

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

That's a whole quarter's worth of revenue

Beginner's guide to SSL certificates

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). ®

Beginner's guide to SSL certificates

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.