OCZ, our troubled SSD-making friends, have been served a subpoena requesting documents and information that relate to press releases the company provided on September 5, 2012 and October 10, 2012. They've also been requested to turn over financial reports dealing with customer incentive programs.
OCZ is in a bit of hot water right now after its earnings were delayed and quite a bit lower than expectations. Many investors have filed lawsuits alleging that the company broke the law in financial reporting. Theories as to why they did this run the gamut, but most settle on the idea they were looking to be acquired.
Ralph Schmitt, president and chief executive officer, noted that, "Since we delayed the filing of our second quarter 10-Q, we had proactively contacted the Commission and have been expecting them to conduct an investigation. We intend to cooperate fully regarding this non-public, fact-finding inquiry and are also continuing with our own internal investigation as previously announced."
OCZ has stated that they will not be providing further comment on this issue until the SEC takes further steps that warrant public disclosure or the matter is settled. It's important to note that the subpoenas are non-public, so information will not be available to journalists or investors. OCZ's stock has dropped to an all-time low of $1.10.
Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.