Manouch Moshayedi Victory Over SEC, Insider Trading Trial

manouch-verdict

Los Angeles – On Friday, June 6, 2014, a trial team led by Paul Hastings partner Thomas A. Zaccaro, and Latham & Watkins partner Patrick E. Gibbs, won a major trial victory on behalf of the founder and former CEO of sTec, Inc., Manouch Moshayedi, in one of the largest insider trading cases ever brought by the U.S. Securities and Exchange Commission.  After an eleven-day trial, the Santa Ana federal court jury deliberated for just four hours before delivering a verdict in Mr. Moshayedi’s favor on all of the SEC’s claims.

Started 2012, the complaint alleged that Manouch Moshayedi unjustly enriched himself by $267 million in August 2009 when he and family members sold nine million shares of sTec in a secondary offering while in possession of material, non-public information. The SEC also alleged that Manouch Moshayedi made material misrepresentations and omissions on two separate occasions.  All of the SEC’s claims were rejected by the jury.

(Reuters) – A federal jury on Friday found the former chief executive of sTec Inc not liable for trading on inside information, a major loss for the U.S. Securities and Exchange Commission.

Manouch Moshayedi, 55, a co-founder of the computer storage device company, was cleared of insider trading on non-public information about a major customer’s reduced demand for a key product, enabling him and his brother to reap roughly $260 million.

The case in Santa Ana, California, was one of the largest U.S. insider trading enforcement actions to go to trial, and is another setback for the SEC on the heels of an insider trading trial loss a week earlier in New York.

“We are extremely grateful to the jury for their hard work and their focus on the evidence,” Patrick Gibbs, Manouch’s lawyer, said in an email.

According to the SEC, Manouch Moshayedi then learned sTec’s largest customer, EMC Corp, would have less demand than expected for its flagship flash memory drive product and would not renew a $120 million supply contract.

Rather than call off the stock offering, Moshayedi sought to hide the facts via a secret side deal with EMC, while continuing with the sale, the SEC said. Moshayedi, who resigned as sTec’s CEO following the lawsuit, denied any wrongdoing.

Gibbs contended that Manouchehr Moshayedi did not know EMC would have excess inventory, reducing its demand, and that those risks were “clearly disclosed.” The SEC also investigated sTec and Mark Moshayedi, a co-founder of the company, but told both in 2012 it would not bring charges.

Results have been mixed. Last month, jurors in New York cleared Nelson Obus, a fund manager at Wynnefield Capital Inc, and two others of insider trading. Earlier in May, a jury in New York found Texas businessman Samuel Wyly and the estate of his brother, Charles, liable for fraud in connection with undisclosed stock trading in offshore trusts.

The case is Securities and Exchange Commission v. Manouch Moshayedi, U.S. District Court, Central District of California, No. 12-01179.

 

STEC Micro SAS 1.8″ SFF SSD

sTecMicro-StandardSSDs

STEC Micro SAS 1.8″ SFF SSDs Availability Announced

sTecMicro-StandardSSDs

STEC is announcing the immediate availability of the first Micro SAS SSD that is shipping as part of the expanded sTec s800 family of SAS drives. The new 1.8″ SFF (small-form-factor) Micro SAS SSDs are available through sTec and its distributors in 200GB and 400GB capacities. These drives are engineered for implementation in blade servers and in caching and high-density computing. Existing sTec s800 2.5″ SAS SSDs range up to 2TB, and sTec is also announcing that all of these drives are now available with 256-bit AES-XTS encryption for applications that require the utmost data protection, such as: cloud computing, data centers, and government and defense.

The 1.8″ SFF design not only provides an option for a vastly reduced footprint, it also ships with low power consumption to meet the power requirements of organizations that require it. Compared to 2.5″ SAS SSDs, the 1.8″ Micro SAS SSDs draw 20% less power. These features coupled with the performance and endurance of sTec SSDs provide a valuable enterprise solution.

The sTec Micro SAS 1.8″ SFF drives are available in 200GB and 400GB capacities now.

Bruce Moxon, sTec CTO

Bruce Moxon stec

Bruce Moxon, sTec CTO of Systems and Solutions, to Join a Panel Discussion Exploring Applications for SDS Relative to Traditional Storage

SANTA ANA, Calif., May 14, 2013 (GLOBE NEWSWIRE) — sTec, Inc. (NASDAQ:STEC), a leading global provider of solid-state storage solutions, announced that one of its technology experts will present on software-defined storage (SDS) at the upcoming TiEcon 2013 conference. Bruce Moxon, sTec’s chief technology officer (CTO) of its Systems and Solutions Group, will take part in a TiEcon panel titled “Software Defined Storage (SDS) – Technology, Landscape and Emerging Trends.” The panel also includes CTOs from Inktank and Red Hat, and will explore best applications for SDS and those suitable for traditional storage in data centers and cloud computing.

What: Panel discussion on SDS applications, with experts from sTec, Inktank and Red Hat

Where: TiEcon 2013, Santa Clara Convention Center, Santa Clara, Calif.

When:    May 17, 2013, 3:45-4:15 p.m.

About sTec, Inc.

sTec, Inc. is a leading global provider of enterprise-class, solid-state storage solutions designed for the ever-growing performance, reliability and endurance requirements of today’s advanced data centers. The industry’s first company to deploy solid-state drives (SSDs) into large-scale enterprise environments, sTec offers the industry’s widest range of solid-state storage solutions, which protect critical information for major business and government organizations worldwide. Headquartered in Santa Ana, California, sTec also serves the embedded and military/aerospace markets with SSDs for industrial and rugged environments. For more information, visit www.stec-inc.com.

sTec and the sTec logo are either registered trademarks or trademarks of sTec, Inc. in the United States and certain other countries. All other trademarks or brand names referred to herein are the property of their respective owners.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. This release contains forward-looking statements that involve risks and uncertainties, including those statements concerning the evolving SDS market, the benefits of sTec’s solid state solutions in SDS, the success of applications for SDS and the suitability of such applications for traditional storage in data centers and cloud computing. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and cause actual outcomes and results to differ materially from current expectations.

Important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements are detailed in filings with the U.S. Securities and Exchange Commission, made from time to time by sTec, including its most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, and its subsequent Current Reports on Form 8-K, which are available on the Investor Relations section of sTec’s website at www.stec-inc.com. The information contained in this press release is a statement of sTec’s present intentions, beliefs or expectations. sTec may change its intentions, beliefs or expectations, at any time and without notice, based upon any changes in such factors, from sTec’s assumptions and otherwise. Except as required by law, sTec undertakes no obligation to publicly release any revisions to any forward-looking statements to reflect events or circumstances occurring after the date thereof, or to reflect the occurrence of unanticipated events.

Manouchehr Moshayedi

CONTACT: Jerry Steach
         Director, Public Relations
         sTec, Inc.
         (415) 222-9996
         jsteach@stec-inc.com