Cyber security co Sentinel Labs raises $12m
The claimant, who has submitted a class action suit for approval, contends that Mellanox's executives inflated the company's share price.
A request was filed today with the Tel Aviv District Court to approve a class-action suit of tens of millions of shekels against Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX), its chairman and CEO Eyal Waldman, CFO, and directors. The claimant contends that they "are responsible for misleading reports and presentations to shareholders, which showed the company's business in too favorable a light and did not reflect reality."
The claimant, Avigdor Weinberger, contends that Mellanox's executives inflated the company's share price to a level that was far above what it would have been without the reports and presentations. He says that, beginning on April 19, 2012, the company made a series of unexpected favorable announcements about its situation, including a revenue guidance of $125-130 million for the second quarter, well above forecasts; and that in July the company said that it had achieved record sales.
Weinberger says that, notwithstanding the misleading reports and presentations, the capital market began to discern Mellanox's real situation, beginning on November 7, 2012, and through the company's revenue warning of January 2, 2013. He says that during this period, investors realized that the company's business did not conform to its reports and presentations.
Discovery of Mellanox's real situation, as detailed by the statement of claim, on the dates during the relevant period, caused the company's share price to plummet. The share price fell 60% from its high point of NIS 480 to NIS 190, after the revenue warning.
Weinberger says that he represents all Mellanox shareholders who bought shares on the TASE between the publication of its financial report for the second quarter on April 19, 2012, through the revenue warning on January 2, 2013.
A similar lawsuit has been filed against Mellanox in a New York court.
Published by Globes [online], Israel business news - www.globes-online.com - on February 20, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
You comment was recieved and soon will be published.
Thank you for posting your comment, which will be reviewed for publication.
Load more comments
It is the only company offering protection on Windows, Mac OSX and Android.
Microsoft chooses WEB3 as local digital media partner
WEB3’s clients include Cellcom, Tnuva, El Al, and Strauss.
Kaltura aims to be world's biggest video technology co
CEO Ron Yekutiel: The idea is to combine Wikipedia with YouTube.
Marvell Technology firing 200 in Israel
The company is firing 15% of its 1,300 employees in the country.
Comverse plunges after disappointing results
Fourth fiscal quarter revenue fell 9.3% to $166.5 million.
Data analytics co Fundbox raises $17.5m
Fundbox processes invoices, allowing small businesses to fix their cash flow.
Amazon, Google, Microsoft battle to host developers
The Internet giants want to attract developers to build apps on their cloud-computing infrastructures.
Amdocs CEO: We strive for 5% annual growth
Eli Gelman fears complacency as the company expands in emerging markets.
Intel Israel development center to remain vital
Intel Israel president Mooly Eden tells "Globes" that Israel remains central to the chip company's plans.
SuperCom share price skyrockets 920%
SuperCom CEO Arie Trabelsi tells "Globes" how he has turned around the identity solutions company.
IMI enters cyber security arena
As privatization approaches, Israel Military Industries bets on a market with enormous growth potential.
Wanted: Arts majors for high-tech
Technology companies are looking for creativity, flexibility, and the ability to think outside the box.
2013 boom year for Israeli high-tech
In the first half of the year, there was a 52% rise in demand for mobile and web developers, and salaries are up as well.
CyberArk reboots network security
CEO Udi Mokady: Media reports on electronic surveillance make explaining our product unnecessary.
Architect Eli Attia: Google stole my life's work
Eli Attia has developed an innovative building design and construction concept that Google sees generating $120 billion annually.