Cohen Milstein Sellers & Toll PLLC Announces the Investigation of OCZ Technology Group, Inc.

  Cohen Milstein Sellers & Toll PLLC Announces the Investigation of OCZ
  Technology Group, Inc.

Business Wire

WASHINGTON -- October 25, 2012

Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine
whether OCZ Technology Group, Inc. (“OCZ” or the “Company”) and certain of its
officers and directors made false and misleading statements and/or omissions
in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of
1934.

Several class action lawsuits were filed in the U.S. District Court for the
Northern District of California by other law firms on behalf of purchasers of
the common stock of OCZ Technology Group, Inc. (NASDAQ: OCZ) between July 10,
2012 and October 11, 2012, inclusive (the “Class Period”).

The complaints allege that OCZ Technology Group, Inc. and certain of its
officers and directors (“Defendants”) misrepresented and/or failed to disclose
that: (1) OCZ was providing extraordinary customer incentives in excess of
what was normal and customary in the past; (2) OCZ was improperly accounting
for customer incentive programs; (3) the Company's financial results were
misstated during the Class Period; (4) OCZ lacked adequate internal and
financial controls; and (5) as a result of the foregoing, Defendants’ positive
statements about OCZ's business, operations and prospects lacked a reasonable
basis.

On September 5, 2012, OCZ reported preliminary revenues for the second fiscal
quarter that were significantly lower than previously announced guidance.
Defendant Ryan M. Petersen, then President and CEO of OCZ, told investors that
the financial shortfall was primarily due to  product-component shortages.
Less than two weeks later, on September 17, the Company announced that
defendant Petersen had resigned, offering no explanation for his abrupt
departure.

On October 10, OCZ announced that it was seeking an extension of time to file
its second quarter Form 10-Q, telling investors that its financial statements
were “under review” and warning that the preliminary revenue results announced
on September 5 should not be relied upon. The company further disclosed that
there would be “material changes [to revenue estimates] due to customer
incentives that were in excess of what was normal and customary in the past.”
The price of OCZ shares dropped from $3.15 to $1.88 on this news.

On October 11, the last day of the Class Period, OCZ filed a Form NT 10-Q
disclosing a further delay in filing its second quarter Form 10-Q. The Company
reported that it “cannot currently estimate the exact filing [date]…as it
requires additional time to complete the accounting review concerning the
impact of its customer incentive programs on its financials.” The price of OCZ
shares fell from $1.86 to $1.47 on October 12.

Cohen Milstein encourages all investors who purchased OCZ common stock between
July 10, 2012 and October 11, 2012 or former employees with information
concerning this matter to contact the firm.

If you are an OCZ shareholder and would like to discuss your right to recover
for your economic loss, you may, without any cost or obligation, call Cohen
Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202)
408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as
lead plaintiff, you must move the Court no later than December 10, 2012 to
request that the Court appoint you as lead plaintiff. A lead plaintiff is a
representative party acting on behalf of other class members in directing the
litigation. To be appointed lead plaintiff, the Court must decide that your
claim is typical of the claims of other class members, and that you will
adequately represent the class. Your share in any recovery will not be
enhanced or diminished by the decision whether or not to serve as a lead
plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers
& Toll PLLC or other attorneys to serve as your counsel in this action, or you
may do nothing and remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting
investor class actions and actions involving securities fraud. The firm has
offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach
Gardens, and is active in major litigation pending in federal and state courts
throughout the nation.

The firm’s reputation for excellence has repeatedly been recognized by courts
which have appointed the firm to lead positions in complex multi-district or
consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead
role in numerous important cases on behalf of defrauded investors, and has
been responsible for a number of outstanding recoveries which, in the
aggregate, total over a billion dollars. Prior results do not guarantee a
similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to
your rights, please contact either of the following:

Steven J. Toll, Esq.
Cameron Clark
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; cclark@cohenmilstein.com

Attorney Advertising

Contact:

Cohen Milstein Sellers & Toll PLLC
Steven J. Toll, Esq.
888-240-0775 or 202-408-4600
stoll@cohenmilstein.com
or
Cameron Clark
888-240-0775 or 202-408-4600
cclark@cohenmilstein.com
 
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