Kirby McInerney LLP Announces It Has Been Retained by an Investor for a Class Action Lawsuit on Behalf of Mellanox Technologies, Ltd. Investors

NEW YORK–(BUSINESS WIRE)– Kirby McInerney LLP announced today that it has been retained by an investor in Mellanox Technologies, Ltd. (“Mellanox” or the “Company”) (NAS: MLNX) to pursue class action claims under the federal securities laws on behalf of all persons or entities who purchased the common stock of Mellanox between April 19, 2012 and January 2, 2013 (the “Class Period“).

Complaints filed in the United States District Court for the Southern District of New York allege that Mellanox and certain of its current and former executives issued materially false and misleading statements during the Class Period regarding the Company’s future prospects and financial performance. According to the complaint, the defendants knew, but concealed from the investing public during the Class Period, that: (1) Mellanox was experiencing a continuous influx of customer complaints regarding glitches in its InfiniBand product; (2) a competitor’s rapid development of its own InfiniBand adaptor would diminish Mellanox’s product offering and increase competition in the market for InfiniBand, in which Mellanox had maintained a near monopoly; (3) the Company’s large first and second quarter 2012 sales growth could not be maintained and was not the result of the defendants’ business acumen or growth in the market for InfiniBand; (4) Mellanox’s inventory, both at the Company and in the hands of at least one significant customer, was increasing dramatically, and the increase would result in decreased sales and profit margins going forward; and (5) as a result of the above factors, Mellanox’s actual sales growth supported neither its own fourth quarter 2012 guidance nor the inflated share price targets analysts and investors were modeling based on defendants’ optimistic statements and guidance during the Class Period.

The complaints allege that the market learned, through a series of partial disclosures made between September 7, 2012 and January 3, 2013, that the foundation for the Company’s business was not as solid as defendants had portrayed it during the Class Period. On September 7, 2012, at least one analyst downgraded Mellanox shares from Buy to Hold. Then, on October 18, 2012, Mellanox reported its third quarter 2012 financial results and issued fourth quarter 2012 fiscal guidance that was lower than expected. Finally, at the end of the day on January 2, 2013, the defendants finally admitted that Mellanox had missed its fourth quarter 2012 revenue guidance by over 20%. This news, along with the above announcements, made the price of Mellanox shares fall precipitously on unusually high trading volume.

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