Securities Class Action Vs. Mellanox Dismissed With Prejudice

Mellanox Technologies, Ltd announced that, on December 17, 2014, judge James Donato of the United States District Court for the Northern District of California granted Mellanox’s motion to dismiss plaintiffs’ Second Amended Complaint for purported violations of the federal securities laws without leave to amend.

In February 2013, Mellanox, its president and CEO, former CFO and CFO were sued in putative class action complaints alleging purported violations of the securities laws (Consolidated Case: In re Mellanox Technologies, Ltd. Securities Litigation, Case No. 3:13-cv-04909-JD).

In March 2014, plaintiffs’ Amended Complaint was dismissed for its failure to allege adequately falsity or scienter.

In May 2014, plaintiffs filed a Second Amended Complaint. The Second Amended Complaint alleged violations of Section 1(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, violations of Section 20(a) of the Exchange Act, and violations of Israel Securities Law, 1968. It alleged that the defendants made false or misleading statements (or failed to disclose certain facts) regarding the company’s business and outlook between July 19, 2012 and January 2, 2013.

In July 2014, the defendants moved to dismiss the Second Amended Complaint. The court granted the defendants’ motion on December 17, 2014, finding that plaintiffs failed to allege adequately any false or misleading statements made by the company or its executives.

Plaintiffs have 30 days after entry of judgment to file a notice of appeal.