Investor-rights law firms have intensified class-action alerts against POET Technologies Inc. following Marvell Semiconductor's decision to cancel all purchase orders related to Celestial AI. The litigation, filed in the U.S. District Court for the District of New Jersey, names CEO Suresh Venkatesan and CFO Thomas Mika as defendants, alleging misrepresentations regarding the company's tax status and business agreements.
Allegations and Key Dates
The complaint, filed on Wednesday, targets investors who purchased POET securities between April 1 and 8:57 a.m. ET on April 27. Lead-plaintiff motions are due by June 29. According to Bernstein Liebhard, the lawsuit claims POET made false statements about its passive foreign investment company (PFIC) status and the details of its agreement with Marvell. Rosen Law Firm has also filed a complaint, accusing POET of omitting material facts related to PFIC classification, which could lead to unfavorable tax consequences for U.S. investors.
Market Reaction and Stock Performance
POET shares traded at $9.385 on Nasdaq, up 17.5 cents, after an earlier pop to $10.92. The stock's market capitalization stands at approximately $572 million. The cancellation of Celestial AI orders has weighed on the stock, as Marvell—which acquired Celestial AI in February—cited a violation of confidentiality rules due to POET's release of shipping and purchase-order data.
Financial Position and Risks
POET reported total revenue of $1.07 million for 2025, with a net loss of $62.96 million. The company holds $430 million in cash, including $225 million raised in Q4 and an additional $150 million in January. Management has highlighted a production order for POET Infinity optical engines worth over $5 million. However, risks include potential customer delays, cancellations, and challenges in restoring the Marvell partnership.
PFIC and Headquarters Relocation
On April 14, POET announced it would provide U.S. shareholders with data to make a qualified electing fund (QEF) election. CFO Thomas Mika indicated the board plans to move POET's headquarters to the U.S., with a shareholder vote potentially scheduled for June 26, aiming to eliminate future PFIC exposure.
Industry Context and Partnerships
Marvell's acquisition of Celestial AI highlighted the demand for optical interconnect technology in AI data centers. POET is expanding its customer base through partnerships with LITEON for optical communication modules and with Lessengers for a 1.6T 2xDR4 optical transceiver. Prototype modules are expected by late 2026, with high-volume manufacturing in 2027. Competitors like Coherent are also advancing optical solutions for AI networks.
Outlook
POET faces the challenge of demonstrating that new contracts can offset the loss of the Celestial AI account. The class action adds legal uncertainty, but the company's cash position and ongoing partnerships provide a buffer. Investors will watch for updates on the Marvell relationship and the outcome of the lead-plaintiff deadline.
