A Heated Bet on POET Technologies Arrives Just as the Stock Craters

Defiance's 2X leveraged POEL ETF debuted days after POET shares plunged 47% on Marvell order cancellations, as class-action lawsuits and a PFIC tax dispute mount.

The launch of a leveraged exchange-traded fund is rarely a quiet affair. But the timing of the Defiance Daily Target 2X Long POET ETF, which began trading on May 1 under the ticker POEL, could hardly have been more dramatic. The product, designed to deliver twice the daily return of POET Technologies shares, hit the market just four days after the Canadian semiconductor firm saw nearly half its market value evaporate in a single session.

The trigger for the collapse was a decision by Marvell Semiconductor to cancel all outstanding purchase orders. Marvell, which had previously acquired Celestial AI, informed POET on April 23 that it was terminating the agreements, citing a breach of confidentiality. The problem, according to Marvell, stemmed from a POET manager who disclosed proprietary details about orders and deliveries in a public interview. The market reacted violently on April 27, sending the stock down 47% — a drop of $7.15 — to close the week at $7.01. That is a long way from the 52-week high of $15.50, though still above the low of $3.87.

A Legal Storm Gathers

The fallout has been swift on the legal front. Four law firms have now filed class-action lawsuits against POET, with Faruqi & Faruqui joining the fray on May 1, following earlier complaints from Rosen Law Firm and Holzer & Holzer. All target the same allegation: that POET failed to properly inform investors about the risk of being classified as a Passive Foreign Investment Company, or PFIC. For US shareholders, that designation carries significant tax penalties, and the lawsuits argue that the company’s disclosures were inadequate.

The legal pressure was amplified by a short-seller report from Wolfpack Research on April 14, which branded POET a “pure stock promotion project with a tax problem.” Wolfpack flagged what it called a seventh strategic pivot and repeated dilution as warning signs, noting that the company’s price-to-sales ratio exceeded 1,100 based on annual revenue of just over $1 million.

Management Fires Back

POET’s leadership is not standing still. Chief Financial Officer Thomas Mika has announced plans to relocate the company’s corporate domicile to the United States — a move that would eliminate the PFIC classification for future tax years. Shareholders will vote on the proposal at the annual meeting scheduled for June 26. The deadline for investors to step forward as lead plaintiffs in the class actions falls three days later, on June 29, creating a tight window of decision-making.

Operationally, the company is pushing ahead. POET has secured a production order worth more than $5 million for optical engines from another technology firm, and it is targeting the delivery of more than 30,000 optical units in 2026. The roadmap calls for high-volume production of light source products in Malaysia during the second quarter, followed by 800G optical engines in the third quarter. Partnerships with LITEON Technology and Lessengers are intended to accelerate entry into co-packaged optics for hyperscale data centers.

Cash in Hand, but Trust in Short Supply

Financially, POET is not in distress. The company raised approximately $375 million in the fourth quarter of 2025, and with additional funding secured early this year, its cash balance now stands at roughly $430 million. That war chest provides a buffer, but it has done little to restore investor confidence after the Marvell blow.

For traders eyeing the new POEL ETF, the product amplifies both gains and losses. Because it resets daily, holding it beyond a single session does not simply deliver twice the stock’s return — compounding effects can erode value even if the underlying shares rise over multiple days. With a shareholder vote, a legal deadline, and production milestones all converging in the coming weeks, the leveraged instrument offers a sharp tool for those betting on a rebound. But as the past week has shown, the edges cut both ways.