A class action has been filed against Silicon Storage Technology, Inc. (NasdaqNM:SSTI), and certain of its officers and directors by stockholders who purchased the company's common stock between March 30, 2004 and December 20, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

Silicon Storage Technology, Inc. (SSTI) is a supplier of flash memory semiconductor devices for the digital consumer, networking, wireless communications and Internet computing markets.

According to a press release dated January 21, 2005, a securities class action was commenced on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Silicon Storage Technology, Inc.

The Complaint alleges that defendants Silicon Storage and one or more of its officers and/or directors violated federal securities laws by issuing false or misleading public statements, which had the effect of artificially inflating the market price of the Company's securities. Specifically, the Complaint alleges that Silicon Storage concealed the following facts: that its sales and margins were being materially impacted by Macronix and Intel's actively lowering their average selling prices; that Silicon Storage was not on track to achieve its profitability projections; and that its gross margin projections were overstated.

Further, on December 20, 2004, Silicon Storage issued a press release announcing that "its revenue in the fourth quarter is expected to be between $102 and $108 million versus previous guidance of $120 to $130 million. Due to current market conditions, the company expects to record an inventory charge of between $20 and $25 million for excess inventory and to write certain products down to their current estimated market values." As result of this news, Silicon Storage shares fell from a close of $7.01 per share on December 20, 2004, to close at $5.99 per share on December 21, 2004, on unusually high trading volume.

If you bought Silicon Storage Technology, Inc. securities between March 30, 2004 and December 20, 2004, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.