Bronstein, Gewirtz & Grossman, LLC Announces That A Class Action Has Been Filed Against Mellanox Technologies, Ltd.
NEW YORK, Feb. 11, 2013 /PRNewswire/ -- Bronstein, Gewirtz & Grossman, LLC announces that a class action suit was filed in the United States District Court for the Southern District of New York on behalf of purchasers who purchased common stock of Mellanox Technologies, Ltd. ("Mellanox" or the "Company") (NasdaqGS: MLNX-News) between April 19, 2012 and January 2, 2013, inclusive (the "Class Period").
On January 2, 2013 the Company Announced it will be lowering the Company's fourth quarter 2012 revenue guidance. Citing "a weaker demand environment, challenging macroeconomic conditions, and a technical issue associated with FDR 56Gb/s InfiniBand cabling which caused approximately $20 million of FDR deployments to be delayed" the Company revised its fourth quarter financial outlook to a range of $119 million to $121 million, sharply below the Company's previous guidance of $145 million to $150 million.
The complaint charges Mellanox and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges as follows: (1) Mellanox was receiving a continuous stream of customer complaints concerning glitches in its InfiniBand product; (2) that the Company 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; (3) the Company 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; (4) The Company'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 (5) 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.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. April 8, 2013 is the deadline for investors to seek a lead plaintiff appointment.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Eitan Kimelman, 212-697-6484
SOURCE Bronstein, Gewirtz & Grossman, LLC