Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of STEC (Nasdaq: STEC) fell more than 10% in early trading and remain down 6% as I write this. Last night, the maker of large-scale flash storage technology disclosed the preliminary results of an SEC investigation.

So what: Regulators began looking into the trading of STEC shares in 2009. Now, according to a company filing, the SEC is on the verge of initiating civil injunction against the company and key executives for violating the antifraud and reporting provisions of federal securities laws.

Now what: As if STEC investors needed more reason to worry. The company already faces stiff competition from the likes of Intel (Nasdaq: INTC) and SanDisk (Nasdaq: SNDK). Now STEC's top executives are facing possible fraud charges. If formally brought, there's certain to be a shake-up of some kind -- exactly the sort of nonsense customers and investors alike would prefer to avoid. Do you agree? Where do you stand on STEC? Let us know using the comments box below.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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