Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against
Mellanox Technologies, Ltd.
NEW YORK, Feb. 14, 2013
NEW YORK, Feb. 14, 2013 /PRNewswire/ -- Bernstein Liebhard LLP 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 a class (the "Class") of
purchasers of Mellanox Technologies, Ltd. ("Mellanox" or the "Company")
(NASDAQ: MLNX) common stock between April 19, 2012 and January 2, 2013 (the
(Logo: http://photos.prnewswire.com/prnh/20120202/MM47134LOGO )
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
According to the complaint, through a series of partial disclosures made
between September 7, 2012 and January 3, 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, on January 2, 2013, defendants admitted that Mellanox had grossly
missed its fourth quarter 2012 revenue guidance by upwards of 20%. This news,
along with the earlier negative announcements, caused the price of Mellanox
stock to fall precipitously, on unusually high trading volume.
Plaintiffs seek to recover damages on behalf of all Class members who invested
in Mellanox common stock during the Class Period. If you invested in Mellanox
common stock as described above during the Class Period, and either lost money
on the transaction or still hold the shares, you may wish to join in this
action to serve as lead plaintiff. In order to do so, you must meet certain
requirements set forth in the applicable law and file appropriate papers no
later than April 8, 2013.
A "lead plaintiff" is a representative party that acts on behalf of other
class members in directing the litigation. In order to be appointed lead
plaintiff, the court must determine that the class member's claim is typical
of the claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or more
class members may together serve as lead plaintiff. Your ability to share in
any recovery is not, however, affected by the decision whether or not to serve
as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel
of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Mellanox shareholder
and/or have information relating to the matter, please contact Joseph R.
Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and
shareholder rights cases and recovered over $3 billion for its clients. It
has been named to The National Law Journal's "Plaintiffs' Hot List" in each of
the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the
United States District Court for the Southern District of New York.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
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York, New York 10016, (212) 779-1414. The lawyer responsible for this
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do not guarantee or predict a similar outcome with respect to any future
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
SOURCE Bernstein Liebhard LLP
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