Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Mellanox Technologies, Ltd

  Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Mellanox
  Technologies, Ltd

Business Wire

NEW YORK -- February 7, 2013

Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/mellanox/) today announced that a class action
has been commenced in the United States District Court for the Southern
District of New York on behalf of all persons or entities who purchased the
common stock of Mellanox Technologies, Ltd. (“Mellanox” or the “Company”)
(NASDAQ:MLNX) between April 19, 2012 and January 2, 2013 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than
60 days from today. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact plaintiff’s
counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at
800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a
member of this class, you can view a copy of the complaint as filed or join
this class action online at http://www.rgrdlaw.com/cases/mellanox/. Any member
of the putative class may move the Court to serve as lead plaintiff through
counsel of their choice, or may choose to do nothing and remain an absent
class member.

The complaint charges Mellanox and certain of its officers and directors with
violations of the Securities Exchange Act of 1934. Mellanox produces and
supplies interconnect products for computing, storage, and communication
applications in the computing, Web 2.0, storage, financial services, database,
and Cloud markets. Mellanox’s most lucrative product offering at the start of
the Class Period was its InfiniBand product. InfiniBand technology is used to
transfer and store data in high-end computing and data centers.

The complaint alleges that during the Class Period, defendants issued
materially false and misleading statements regarding the Company’s financial
performance and future prospects. According to the complaint, the true facts,
which were known or recklessly disregarded by each of the defendants but
concealed from the investing public during the Class Period, were as follows:
(i) Mellanox was receiving a continuous stream of customer complaints
concerning glitches in its InfiniBand product; (ii) Mellanox knew that the
pace of a competitor’s development of its own InfiniBand adaptor would
diminish Mellanox’s product offering and increase competition in the
InfiniBand market in which Mellanox enjoyed a near monopoly; (iii) Mellanox
knew that its outsized first and second quarter 2012 sales growth was not
sustainable and was not the result of defendants’ business acumen or growth in
the InfiniBand market; (iv) Mellanox’s inventory was dramatically increasing,
both at the Company and in the hands of at least one significant customer,
which would decrease sales and profit margins going forward; and (v) as a
result, Mellanox knew its actual sales growth supported neither its own fourth
quarter 2012 guidance nor the inflated share price targets the investment
community was modeling based on defendants’ bullish Class Period statements
and guidance.

According to the complaint, through a series of partial disclosures made
between September 7, 2012 and January3, 2013, the market learned that the
Company’s business was not as defendants had portrayed it throughout the Class
Period. On September 7, 2012, Mellanox shares were downgraded from Buy to
Hold. Then on October 18, 2012, Mellanox reported third quarter 2012 financial
results and issued lower than expected fourth quarter 2012 fiscal guidance.
Finally, at the end of the day on January 2, 2013, defendants were forced to
concede that Mellanox had grossly missed its fourth quarter 2012 revenue
guidance by upwards of 20%. This news, along with the earlier negative
announcements, shocked the market causing the price of Mellanox stock to fall
precipitously, on unusually high trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of Mellanox
common stock during the Class Period (the “Class”). The plaintiff is
represented by Robbins Geller, which has expertise in prosecuting investor
class actions and extensive experience in actions involving financial fraud.

Robbins Geller represents U.S. and international institutional investors in
contingency-based securities and corporate litigation. With nearly 200 lawyers
in nine offices, the firm represents hundreds of public and multi-employer
pension funds with combined assets under management in excess of $2 trillion.
The firm has obtained many of the largest recoveries and has been ranked
number one in the number of shareholder class action recoveries in MSCI’s Top
SCAS 50 every year since 2003. According to Cornerstone Research, the firm’s
recoveries have averaged 35% above the median for all firms over the past
seven years (2005-2011). Please visit http://www.rgrdlaw.com for more
information.

Contact:

Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
djr@rgrdlaw.com
 
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