A $5 Million Lifeline and a 2x ETF: POET Technologies Navigates the Aftermath of a Catastrophic Interview

POET Technologies stock stabilizes near $9.40 after a 47% crash from a confidentiality breach with Marvell, as a class-action lawsuit and tax concerns mount ahead of Q1 results.

The fallout from a single ill-advised interview continues to reverberate through POET Technologies, leaving the photonics company scrambling to restore investor confidence while fending off a class-action lawsuit. The stock has stabilized near $9.40, a far cry from the April high of $15.50, but still a significant 57% above its 200-day moving average of $6.37—a testament to just how far the shares had rallied before the roof caved in.

The trouble began in mid-April when CFO Thomas Mika confirmed in an interview that POET had secured a contract with Celestial AI, a company owned by Marvell Technology. The stock doubled within a week. But the celebration was short-lived. Marvell promptly terminated all orders related to Celestial AI, citing a breach of confidentiality. On April 27, POET shares cratered 47.35% to $7.95.

Now, multiple law firms are consolidating shareholder losses into a securities class action filed in U.S. District Court in New Jersey. The suit targets Mika and another executive, accusing them of signing off on false financial statements. Beyond the blown deal, the complaint alleges the company failed to disclose that POET may qualify as a passive foreign investment company under U.S. tax law—a status that could carry significant penalties for American investors. The class period covers anyone who bought shares between April 1 and April 27, with a June 29 deadline for lead plaintiffs to step forward.

Amid the legal storm, POET has managed to secure a $5 million order from an unnamed technology company. That was enough to halt the freefall, but the stock remains well below its pre-crash peak. The company’s financials remain under pressure: in fiscal 2025, it generated roughly $1 million in revenue against a net loss of nearly $63 million, with R&D alone consuming tens of millions.

To address the tax concerns, management is planning to reincorporate in the United States, a move that would shield U.S. shareholders from future tax penalties. But the legal clock is ticking, and the next big test arrives May 13, when POET reports first-quarter results. Those numbers will reveal just how deep the Marvell loss cuts into the order book—and whether the new $5 million contract is a genuine lifeline or merely a Band-Aid.

Adding another layer of volatility, Defiance ETFs has launched a leveraged fund that doubles POET’s daily price swings in both directions. The product has attracted speculative traders, but the compounding effects pose serious risks for buy-and-hold investors.

For now, the stock is treading water. But with a lawsuit gaining momentum, a key customer lost, and quarterly results looming, the next few weeks will determine whether POET can rebuild its narrative—or whether the damage from one interview proves permanent.