NEW YORK, March 18, 2013 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Mellanox Technologies, Ltd. ("Mellanox" or the "Company") (Nasdaq:MLNX).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Mellanox was receiving numerous customer complaints about its InfiniBand product; (2) the Company was aware that a rival's InfiniBand adaptor would diminish Mellanox's market share; (3) Mellanox's first and second quarter 2012 sales growth would not be sustainable; and (4) Mellanox's inventory was increasing so much that sales and profit margins would diminish.
On September 7, 2012, Mellanox share price dropped after analyst Stifel Nicolaus downgraded the Company's stock 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, the Company admitted that Mellanox had grossly missed its fourth quarter 2012 revenue guidance by over 20%. These disclosures caused a decline in Mellanox share price from a close of $119.93 on September 6, 2012 to a close of $50.70 on January 3, 2013 – a decline of roughly 57.7 percent.
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Take Action
If you invested in Mellanox stock or options between April 19, 2012 and January 2, 2013 and would like to discuss your legal rights, visit www.faruqilaw.com/MLNX. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Mellanox's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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CONTACT: FARUQI & FARUQI, LLP 369 Lexington Avenue, 10th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. rgonnello@faruqilaw.com Francis McConville, Esq. fmcconville@faruqilaw.com Telephone: (877) 247-4292 or (212) 983-9330Source:Faruqi & Faruqi LLP