NEW YORK, May 11, 2026, 06:04 (EDT)
POET Technologies Inc. came under fresh legal scrutiny Monday, as investor-rights law firms ramped up efforts over the weekend, alerting shareholders to a looming June 29 deadline in a federal securities class action over the AI photonics firm’s tax statements and voided Celestial AI orders.
The question has fresh urgency as attention lingers on April’s steep selloff and the severed commercial tie with Marvell, a major chipmaker expanding into AI data center optical connections. Shares of POET last changed hands at $10.95, putting the company’s market cap near $669 million ahead of regular U.S. trading.
Faruqi & Faruqi on Sunday announced it’s looking into possible investor claims, pointing out that anyone who bought or otherwise acquired POET securities from April 1 through 8:57 a.m. ET on April 27 faces a June 29 lead-plaintiff deadline. According to the firm, the complaint centers on allegedly false or misleading statements. Shares of POET tumbled more than 45% intraday after the market learned of the order cancellation.
Rosen Law Firm, the firm behind the class action filing, says the lawsuit targets POET securities purchased from April 1 through 8:57 a.m. ET on April 27. The case sits in the U.S. District Court for the District of New Jersey. No class certification yet—the proceedings are still in the preliminary phase.
POET took a blow on April 27: Marvell Semiconductor scrapped every purchase order it had from Celestial AI, including the first production orders POET had talked up back in 2023. According to POET, Marvell—now the owner of Celestial AI—sent a written termination notice on April 23. The reason? Marvell pointed to alleged breaches of confidentiality around disclosed purchase order and shipping details.
POET said it’s sticking with its AI and optical-networking push and flagged ongoing shipments to other clients. That includes a separate deal with a different tech player, worth around $5 million. That’s become a key disclosure—investors are parsing out what’s specific to the lost account versus the rest of the order book.
The lawsuits rope in PFIC—short for Passive Foreign Investment Company—a U.S. tax label that can mean extra paperwork and potential federal tax headaches for Americans holding shares. Back in April, POET said it expected to be classified as a PFIC for 2025. CFO Thomas Mika indicated the company didn’t think it would qualify as a PFIC for 2026, adding that the board planned to move POET’s home base to the United States.
Bronstein, Gewirtz & Grossman on Sunday said their complaint claims POET misstated details about its expected tax status, while also accusing Mika of breaching a business agreement by publicly discussing POET’s deals in an interview. The firm emphasized these are still just allegations. No court has ruled.
The competitive set is tight, but the stakes are high. In February, Marvell wrapped up its acquisition of Celestial AI, touting the startup’s Photonic Fabric as a way to move data fast and efficiently across sprawling AI setups. “Next-generation AI and cloud data center architectures” are exactly what Celestial’s tech is built for, CEO Matt Murphy said. Marvell’s also in a head-to-head with Broadcom in the custom chip and networking space for AI. Marvell Technology, Inc.
POET, a much smaller player, bills itself as a developer of high-speed optical engines, light-source products, and custom optical modules aimed at AI platforms and hyperscale data centers. Basically, the company is working to move data using light instead of just electrical signals—that’s crucial as AI workloads call for both faster connections and lower energy draw.
The downside risk is straightforward. POET flagged in its SEC filing that actual results may vary, pointing to uncertainties around reestablishing ties with Marvell, locking in new Marvell business, filling current orders, preventing cancellations or holdups, and securing more funding.
There’s not much time between key events: POET’s U.S. redomicile proposal might head to a shareholder vote at its June 26 annual meeting, if that step is required. Just three days after that comes the deadline for lead plaintiffs in the class-action suit. Before those dates hit, shipment news and legal moves are likely to impact the stock just as much as swings in the AI hardware sector.
