POET Technologies Inc. is facing multiple class-action lawsuits alleging securities fraud after the company’s stock price plummeted 47% in a single day.
“The Complaint alleges that the Defendants made false and/or misleading statements and/or failed to disclose that POET misrepresented its tax status,” according to a statement from Bronstein, Gewirtz & Grossman, LLC, one of the firms that filed a suit.
The lawsuits claim POET failed to disclose that it was likely a passive foreign investment company (PFIC), creating negative tax implications for U.S. investors. Additionally, the complaints allege CFO Thomas Mika violated a business agreement in a public interview. On April 27, POET's stock fell $7.15, or 47.35%, to close at $7.95 per share after Marvell Semiconductor cancelled all purchase orders, citing confidentiality violations.
The legal action covers investors who purchased POET securities between April 1 and April 27, 2026. The deadline for investors to request appointment as lead plaintiff is June 29, 2026, which will be a key date in the proceedings.
At least three law firms—The Schall Law Firm, Bronstein, Gewirtz & Grossman, LLC, and Pomerantz LLP—have announced class-action lawsuits on behalf of POET Technologies shareholders. The firms are seeking to recover damages for investors who suffered losses due to the alleged false and misleading statements.
The stock's sharp decline on April 27 followed the publication of an article on Investing.com, which reported that Marvell Semiconductor Inc. had cancelled all purchase orders from Celestial AI, a company recently acquired by Marvell. The cancellation was attributed to POET's public disclosures of information related to the purchase orders, which Marvell claimed violated confidentiality obligations.
The lawsuits contend that the company's public statements during the class period were materially false and misleading because they failed to disclose the PFIC tax issue and the risks posed by the CFO's public comments.
The flurry of lawsuits creates significant legal and financial uncertainty for POET Technologies, potentially impacting its valuation and access to capital. Investors will be closely watching for the court's decision on class certification and any response from the company regarding the allegations.
This article is for informational purposes only and does not constitute investment advice.
