POET Technologies Inc. is facing a federal securities class action following the cancellation of all Celestial AI purchase orders by Marvell Semiconductor, which triggered a 45% intraday drop in POET shares on April 27. Law firms are urging investors who bought POET securities between April 1 and April 27 to act before the June 29 lead-plaintiff deadline.
The lawsuit, filed by Rosen Law Firm, targets statements made between April 1 and April 27, 2026, and is pending in the U.S. District Court for the District of New Jersey. No class has been certified yet. The case also involves disputed tax disclosures and PFIC status.
POET shares last traded at $10.95, giving the company a market capitalization of approximately $669 million. The selloff followed Marvell's written termination notice on April 23, citing alleged breaches of confidentiality regarding disclosed purchase order and shipping details.
POET, a developer of high-speed optical engines and modules for AI platforms, has said it will continue its AI and optical-networking push, with ongoing shipments to other clients, including a separate deal worth around $5 million. The company also expects to be classified as a Passive Foreign Investment Company (PFIC) for 2025, which could mean additional tax paperwork for U.S. shareholders.
CFO Thomas Mika indicated that the company does not expect to qualify as a PFIC for 2026, and the board plans to move POET's domicile to the United States. The lawsuits also accuse Mika of breaching a business agreement by publicly discussing deals in an interview.
Marvell completed its acquisition of Celestial AI in February, touting the startup's Photonic Fabric technology for AI data center architectures. Marvell competes directly with Broadcom in the custom chip and networking space for AI. POET, a much smaller player, is working to replace electrical signals with light for faster, more energy-efficient data movement in AI workloads.
POET has flagged risks in its SEC filings, including uncertainties around reestablishing ties with Marvell, securing new business, and preventing further cancellations. A shareholder vote on the U.S. redomicile proposal is expected at the June 26 annual meeting, just three days before the lead-plaintiff deadline.
