On May 14, 2013, Judge Alvin K. Hellerstein of the United States District Court for the Southern District of New York appointed Cohen Milstein as co-lead counsel in a securities class action against Mellanox Technologies, Ltd. The litigation seeks to recover damages against the Company and certain of its current and former officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Mellanox Technologies, Ltd., a fabless semiconductor company, produces and supplies interconnect products for computing, storage, and communication applications in the computing, Web 2.0, storage, financial services, database, and cloud markets.
The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that statements regarding the purportedly strong and consistent demand for the Company's product offerings concealed what Mellanox knew of the advanced development pace of Intel's own InfiniBand product offerings and the negative impact that would have on both Mellanox's sales growth and Intel's demand for Mellanox product offerings. Defendants also concealed that they were receiving a deluge of customer complaints about Mellanox's own Infini and product offerings during the Class Period, and the adverse impact that was having on sales demand and costs. As a result, Mellanox's stock traded at artificially inflated prices during the Class Period, trading above $120 per share in intraday trading by September 6, 2012, allowing several insiders to cash out by selling millions of dollars of Mellanox stock at fraud-inflated prices.
However, the Complaint alleges that 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 throughout the Class Period, causing significant declines in the price of Mellanox stock.
Plaintiffs seek to recover damages on behalf of all purchasers of Mellanox common stock during the Class Period.
Court Order Appointing Lead Plaintiff and Lead Counsel - May 14, 2013 [PDF]