Without something material emerging, these lawsuits typically run out of gas after 6-12 months while costing OCZ time/$$ filing paperwork and depos.… Nothing serious… Just cost of business...
The real risk is if there is a restatement, some material info revealed related to Q1/Q2 or something material in the SEC investigation. Any one (or all) of these things would transform the lawsuits from a simple pain-in-the#$%$ to a real issue…
The risk is directly on OCZ, not their insurers (D&O, BC, etc doesn’t cover fraud).
IF they got no supplies from MU they could not make the product. They can cry all they want. Shorts did most the PPS damage. The company was a mess SCHMITT said.
By Sruthi Ramakrishnan and Sriraj Kalluvila
Thu Nov 29, 2012 2:37pm EST
(Reuters) - Solid-state hard drive maker OCZ Technology Group Inc is sourcing a critical component from multiple vendors after a supply shortage caught it off guard, contributing to a near 60 percent drop in its share price.
"Recently we haven't had any significant NAND supply issues, mostly because we diversified ourselves to multiple suppliers. That was part of the issue before. We were overly reliant on one supplier," Ralph Schmitt, who was named CEO in October after the resignation of co-founder Ryan Petersen, said in an interview.
OCZ shares rose as much as 30 percent to $1.76 on the Nasdaq on Thursday.
The company, known for its Vertex brand, warned in September that it expected second-quarter revenue to be below its prior forecast due to a shortage of NAND chips, used for general storage and data transfer in memory cards and solid-state drives.
The company later said it expected a "significant" loss in its second quarter due to issues in its customer incentive programs, and also delayed filing the results.
Schmitt said a third-party review of OCZ's investigation into customer incentive programs at the heart of the expected loss had taken longer than expected, so it was unclear when the company would report its second-quarter results.
((((((("I wish I knew the answer to that question," Schmitt said, adding that the review may end by next week.))))))) tick tick tick shorts fryed