POET Technologies: A CFO’s Interview Sparks a Legal and Market Meltdown

POET Technologies loses half its market value after Marvell cancels a key order, triggering a class-action lawsuit and a shareholder vote on redomiciling to the US.

The optics firm POET Technologies has found itself at the center of a perfect storm — a cancelled contract, a shareholder lawsuit, and a looming vote that could reshape its corporate identity. The stock, which had doubled in a single week on the back of a major order, has since surrendered nearly all those gains in a chaotic two-day selloff that wiped out roughly half its market value.

The trouble began with a slip of the tongue. On April 27, POET disclosed that Marvell Semiconductor had terminated all purchase orders related to Celestial AI — a company Marvell had acquired earlier this year. The written cancellation, dated April 23, cited a breach of confidentiality. The alleged culprit? An interview POET’s chief financial officer, Thomas Mika, gave to the financial platform Stocktwits, in which he reportedly confirmed that a previously announced order was tied to Celestial AI and that its value had exceeded earlier thresholds. For Marvell, that was enough to pull the plug. POET has not disclosed how much revenue it stands to lose from the cancellation.

The market’s reaction was swift and brutal. On April 27, the stock plunged more than 45% in intraday trading. The following day brought another 17.8% decline, even as the S&P 500 and Nasdaq held steady. By April 30, shares were trading between $6.34 and $7.99, a weekly loss of roughly 50% from the recent highs. For context, the 52-week peak stood at $15.50.

A Class Action and a Tax Problem

The cancelled contract has opened the floodgates to litigation. On April 29, Rosen Law Firm filed a class-action lawsuit on behalf of investors who held POET shares between April 1 and April 27. The core allegation: the company misled shareholders about its status as a Passive Foreign Investment Company, or PFIC — a tax designation that can carry significant penalties for US investors. The suit was triggered by a short-seller report from Wolfpack Research, published on April 14, which flagged the PFIC issue and characterized the stock’s prior rally as a promotion.

Other law firms, including Block & Leviton, have since launched investigations into whether management failed to disclose tax risks and violated confidentiality agreements. The deadline for lead plaintiffs to step forward is June 29.

A Structural Fix on the Horizon

POET’s management is betting that a change of address will solve the PFIC problem. Shareholders are set to vote on June 26 on a proposal to redomicile the company to the United States. If approved, the move would eliminate the PFIC designation for US investors and legally anchor the company where its stock is primarily traded. Whether that will affect the pending lawsuits remains unclear — the allegations concern past communications, not future corporate structure.

Operational Goals Intact, For Now

Away from the legal turmoil, POET is pressing ahead with its production plans. The company has secured a manufacturing order for optical engines worth more than $5 million and aims to ship over 30,000 units in 2026. With $430 million in cash reserves, it has ample liquidity to fund the ramp-up, despite a net loss of $42.7 million in the fourth quarter of 2025.

Analysts at 24/7 Wall St. have maintained their price target of $10.51. Technically, the stock faces resistance at $7.50, with support at $6.50. The next major catalyst will be the June 26 shareholder vote — and whether any new legal filings emerge before then.

For now, POET Technologies is a company caught between a legal storm and a strategic pivot, with its share price serving as a daily barometer of investor sentiment. The coming weeks will determine whether the redomiciliation vote offers a clean slate — or just another headline.