POET Technologies Sinks 48% in a Week as Lawsuits Pile Up and a Key Deal Unravels

POET Technologies shares crash 48% in a week after Marvell cancels orders and shareholder lawsuits allege fraud, but production progress and a relocation vote offer a counter-narrative.

The optics and photonics developer POET Technologies has been battered by a perfect storm of corporate setbacks, sending its stock into a tailspin that erased nearly half its value in the span of a single week. Shares closed at $6.60, down roughly 48% from the prior week, as a cancelled major order and a flurry of shareholder lawsuits shattered investor confidence.

The trouble began in April when Marvell Semiconductor abruptly terminated orders tied to POET’s subsidiary, Celestial AI. The stock cratered from $15.10 to $7.95 in a single session, a gut-wrenching 47% plunge. That was only the opening act. Shortly after, short seller Wolfpack Research published a report alleging POET had misled investors about its tax status, claiming the company qualifies as a passive foreign investment company under US law—a designation that could trigger steep tax penalties for American shareholders who fail to report it correctly.

Three US law firms have now filed class-action lawsuits, accusing POET’s management of securities fraud related to both the Marvell cancellation and the tax disclosure issues. Investors have until June 29 to register as lead plaintiffs in the cases.

Chart Takes a Beating

The technical damage is severe. The stock has sliced through its 200-day moving average of $7.30 and now sits just below its third classic support zone at $6.64. The 50-day moving average, at $9.75, looms as a formidable resistance level should any bounce materialize. The Relative Strength Index has fallen to around 41, signaling heavy selling pressure though not yet in oversold territory.

The key pivot point sits at exactly $7.00, with initial resistance at $7.11. On the downside, chartists are watching $6.50 as a critical floor—a level the stock tested when it closed at $6.47 on the final day of April. Trading volume has been elevated, with nearly 71 million shares changing hands, slightly above the average.

Despite the carnage, the stock still shows a gain of roughly 62% on a year-to-date basis, a fact that offers cold comfort to recent buyers.

Production Progress Offers a Counter-Narrative

Away from the courtroom drama, POET’s operational story remains intact. The company recently secured a production order for its optical engines valued at over $5 million. Management is targeting the delivery of more than 30,000 units this year, marking the critical transition from research and development to volume manufacturing.

The company is also sitting on a substantial cash pile, having raised more than half a billion US dollars in recent months. Those funds are being channeled into expanding production capacity in Malaysia, where the optical engines will be assembled.

On the tax front, POET’s board has proposed relocating the corporate domicile to the United States. Shareholders will vote on the move on June 26.

All Eyes on May 13

The next major catalyst arrives on May 13, when POET reports first-quarter earnings. Analysts are forecasting a loss of $0.05 per share. The following day, management will hold a conference call where investors will demand concrete answers on production ramp-up timelines, new customer wins, and how the company plans to fill the revenue hole left by the Marvell cancellation.

For a stock that has been cut in half and now faces a legal siege, the quarterly numbers will need to deliver more than just promises.