Kirby McInerney LLP announced today that it has been retained by an investor in Mellanox Technologies, Ltd. (“Mellanox” or the “Company”) (NASDAQ: MLNX) to pursue class action claims under the federal securities laws on behalf of all persons or entities who purchased the common stock of Mellanox between April 19, 2012 and January 2, 2013 (the “Class Period”).
Complaints filed in the United States District Court for the Southern District of New York allege that Mellanox and certain of its current and former executives issued materially false and misleading statements during the Class Period regarding the Company’s future prospects and financial performance. According to the complaint, the defendants knew, but concealed from the investing public during the Class Period, that: (1) Mellanox was experiencing a continuous influx of customer complaints regarding glitches in its InfiniBand product; (2) a competitor’s rapid development of its own InfiniBand adaptor would diminish Mellanox’s product offering and increase competition in the market for InfiniBand, in which Mellanox had maintained a near monopoly; (3) the Company’s large first and second quarter 2012 sales growth could not be maintained and was not the result of the defendants’ business acumen or growth in the market for InfiniBand; (4) Mellanox’s inventory, both at the Company and in the hands of at least one significant customer, was increasing dramatically, and the increase would result in decreased sales and profit margins going forward; and (5) as a result of the above factors, Mellanox’s actual sales growth supported neither its own fourth quarter 2012 guidance nor the inflated share price targets analysts and investors were modeling based on defendants’ optimistic statements and guidance during the Class Period.
The complaints allege that the market learned, through a series of partial disclosures made between September 7, 2012 and January 3, 2013, that the foundation for the Company’s business was not as solid as defendants had portrayed it during the Class Period. On September 7, 2012, at least one analyst downgraded Mellanox shares from Buy to Hold. Then, on October 18, 2012, Mellanox reported its third quarter 2012 financial results and issued fourth quarter 2012 fiscal guidance that was lower than expected. Finally, at the end of the day on January 2, 2013, the defendants finally admitted that Mellanox had missed its fourth quarter 2012 revenue guidance by over 20%. This news, along with the above announcements, made the price of Mellanox shares fall precipitously on unusually high trading volume.
If you would like to serve as a lead plaintiff, you must move the Court no later than April 8, 2013. Please contact Mark Strauss of Kirby McInerney LLP at (212) 371-6600, by email at email@example.com or by filling out this contact form if you would like to discuss this action or have any questions about this notice or your rights or interests. If you are a member of the class in this action, you can view a copy of the complaint as filed or join this class action here.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, whistleblower, antitrust and consumer litigation. The firm has specialized in complex litigation, including securities class actions, for several decades. Kirby McInerney LLP has repeatedly demonstrated its expertise in this field, and has been recognized by various courts that have appointed the firm to major positions in consolidated and multi-district litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and the firm’s achievements and quality of service have been chronicled in numerous published decisions. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
Mark Strauss, 212-371-6600
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here