The Red Flags: What POET Technologies Insiders Allegedly Knew About NDA Violations and PFIC Tax Exposure Before Shareholders Did
NEW YORK, June 01, 2026 (GLOBE NEWSWIRE) — Levi & Korsinsky, LLP announces that a securities class action has been filed against POET Technologies Inc. (NASDAQ: POET).
YOU MAY BE AFFECTED IF YOU:
- Purchased POET stock between April 1, 2026 and April 27, 2026
- Lost money on your POET investment
Submit your information to recover losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
POET shares collapsed 47.3%, a loss of $7.15 per share, after the Company disclosed that Marvell Semiconductor cancelled all Celestial AI purchase orders due to a confidentiality breach. The lead plaintiff deadline is June 29, 2026.
What They Allegedly Knew Before Shareholders Did
The securities action contends that POET’s executives possessed material non-public information about two critical risks long before those risks were disclosed to the investing public. First, the Company’s own 2025 Annual Report, filed March 31, 2026, acknowledged that POET “may be treated as a PFIC” for 2025, yet this acknowledgment buried the severe tax consequences U.S. holders would face. Second, management was allegedly aware that confidentiality obligations governed the Company’s relationship with Marvell Semiconductor and Celestial AI at the time the CFO appeared on a public interview discussing those very arrangements.
The Red Flags That Emerged
The lawsuit chronicles a pattern of warning signs that allegedly should have prompted corrective disclosure well before shareholders absorbed catastrophic losses:
- POET generated just $2.3 million in total revenue since 2020, yet shares outstanding surged 303% from 38 million to 153 million between late 2022 and early 2026
- The Company’s 2025 net loss represented negative 5,858% of revenue, raising fundamental questions about the sustainability of its business model
- The 2025 Annual Report contained language acknowledging likely PFIC status, yet the filing did not adequately warn U.S. investors of the punitive tax rates and compounding interest penalties they faced
- On April 14, 2026, an independent research firm publicly identified POET as a PFIC, causing an immediate 8.08% stock decline, yet management did not withdraw or correct prior statements about business prospects
- Just seven days after the PFIC revelation, the CFO appeared on a public interview discussing confidential purchase order and shipping details, the action alleges, despite being bound by non-disclosure obligations
Inside Knowledge vs. Public Statements
As pleaded in the complaint, the Individual Defendants signed Sarbanes-Oxley certifications attesting to the accuracy of financial reporting and the disclosure of all fraud. The action claims these certifications were false because management knew the Company’s PFIC status posed material valuation risk and that confidentiality obligations prohibited public discussion of customer arrangements. When the CFO publicly stated on April 21, 2026, that POET was “a supplier to Marvell now that they’ve acquired Celestial AI,” the complaint charges that he was actively breaching those obligations while investors relied on his statements as evidence of a healthy business relationship.
“The timeline raises important questions about when certain risks were known internally versus when they were disclosed to the investing public,” stated Joseph E. Levi, Esq.
Act now to protect your rights or call (212) 363-7500.
About Levi & Korsinsky, LLP
Levi & Korsinsky represents investors in securities class actions nationwide, with a track record of recovering hundreds of millions for shareholders harmed by alleged corporate concealment. Ranked among ISS Top 50 for seven consecutive years. Lead plaintiff applications must be submitted by June 29, 2026.
Frequently Asked Questions About the POET Lawsuit
Q: When did POET Technologies allegedly mislead investors? A: The class period runs from April 1, 2026 to April 27, 2026. The alleged fraud was revealed through corrective disclosures on April 14, 2026 and April 27, 2026, causing significant stock declines.
Q: How much did POET stock drop? A: Shares fell approximately 47.3%, a decline of $7.15 per share, after the Company disclosed that Marvell Semiconductor cancelled all Celestial AI purchase orders due to a confidentiality breach. Investors who purchased shares during the class period at artificially inflated prices may be entitled to compensation.
Q: What do POET investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What if I already sold my POET shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
