Re: They are contradicting themselves
Read the complaint (the article provides a link). Your questions will be answered.
The complaint makes for interesting reading. The email string between Manouch and EMC makes clear Manouch quite intentionally inflated STEC's 3Q 09 revenues, and therefore STEC's stock price, in order to set the stage for his enormous and utterly illegal stock sale.
Yes, it's bad. The good news is STEC itself apparently won't be facing SEC charges.