POET Technologies Faces Dual Threat: Shareholder Lawsuits and a Collapsed Marvell Deal

A CFO's ill-timed remark about Celestial AI orders triggers Marvell to cancel contracts, wiping out nearly half of POET's market value and sparking multiple securities fraud lawsuits.

A single ill-timed remark by a senior executive has sent POET Technologies into a tailspin, wiping out nearly half its market value and triggering a wave of legal action from disgruntled investors. The fallout from a broken confidentiality agreement is now playing out in US courts, with four law firms preparing to file class-action complaints.

The Interview That Backfired

The trouble began on April 21, when CFO Thomas Mika participated in a public discussion about the company’s business relationships. During that appearance, he disclosed confidential details regarding orders from Celestial AI, a key customer that had been acquired by Marvell Technology in February for $3.25 billion. Mika named partners such as Foxconn and Luxshare, and revealed specific financial terms—information that was supposed to remain under wraps.

Marvell, which had inherited Celestial AI’s supply agreements, did not take kindly to the breach. On April 23, the semiconductor giant canceled all outstanding purchase orders for POET’s optical interposer technology. The stock cratered by more than 45 percent in the days that followed.

Lawsuits Pile Up

At least four US law firms—Block & Leviton, Faruqi & Faruqi, Rosen Law Firm, and Schall—are now investigating potential securities fraud claims against POET. They allege that management misled investors between April 1 and April 27, the period covering the ill-fated interview and the subsequent order cancellation. The legal complaints also zero in on a separate issue: POET’s alleged failure to disclose its status as a passive foreign investment company (PFIC) under US tax law.

For American shareholders, PFIC classification can carry severe tax consequences. The company attempted to address the problem in mid-April by promising to provide documentation for a tax-neutral designation for 2025. To resolve the matter permanently, the board plans to move the corporate domicile to the United States—a proposal that will be put to a shareholder vote at the annual meeting in late June.

A Tale of Two Balance Sheets

Operationally, POET presents a stark contrast between its cash pile and its revenue stream. In the fourth quarter of last year, the optical chip developer generated only a low six-figure sum in sales while posting a net loss of nearly $43 million. For the full year, the red ink totaled $63 million.

Yet the company is sitting on a massive war chest. Following successful fundraising rounds, POET held between $430 million and $460 million in cash as of late April—enough to sustain operations for the foreseeable future.

Looking Beyond the Crisis

Management is trying to steer attention back to ongoing business. POET has highlighted a separate production order worth roughly $5 million from another technology firm, and says it expects to ship more than 30,000 optical engines this year. The partnership with LITEON Technology remains intact, and deliveries to other customers are proceeding normally, according to the company.

On the chart, analysts are watching the $6.50 support level. The stock closed at around $6.88 on Wednesday, down 14.32 percent for the session. A break below that threshold could trigger further selling.

Key Dates for Investors

Shareholders who want to participate as lead plaintiffs in the US class-action lawsuits have until June 29, 2026 to register. Three days earlier, on June 26, management will face questions at the annual general meeting, where the proposed relocation to the US will also be on the agenda. For now, the legal clock is ticking, and the outcome of the law firms’ investigations will determine whether the class actions proceed.