Alert: Claims Focus on Alleged Failures in Internal Controls Over Confidential Information and Tax Compliance That Cost POET Investors $7.15 Per Share
NEW YORK, May 21, 2026 /PRNewswire/ -- SueWallSt reminds purchasers of POET Technologies Inc. (NASDAQ: POET) securities of a pending securities class action.
THE CASE: A class action seeks to recover damages for investors who purchased POET securities between April 1, 2026 and April 27, 2026.
YOUR OPTIONS: You may be entitled to compensation without payment of any out-of-pocket fees. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.
POET shares collapsed 47.3%, losing $7.15 per share, after the Company disclosed on April 27, 2026 that its largest customer cancelled all purchase orders. Investors have until June 29, 2026 to seek lead plaintiff status.
How a Photonics Company's Internal Failures Allegedly Destroyed Its Most Important Customer Relationship
A photonic chip packaging company cannot grow without protecting the confidential relationships that generate its revenue. POET Technologies designs optical interposer solutions for AI and data center applications. The complaint recounts that the Company generated just $2.3 million in total revenue since 2020, making every customer relationship existentially important. The lawsuit contends that internal controls failed at two critical junctures: managing confidential customer information and accurately assessing international tax obligations.
The Alleged NDA Breach That Ended the Celestial AI Revenue Stream
As detailed in the action, the Company's CFO appeared in a public social media interview on April 21, 2026 and disclosed specific purchase order details, shipping timelines, and the supplier relationship with Marvell Semiconductor (which had acquired Celestial AI). The filing states that this disclosure directly violated confidentiality obligations. On April 23, 2026, Marvell provided written notice that POET had breached its NDA. By April 27, 2026, every purchase order from Celestial AI was cancelled.
Alleged Internal Controls Failures by the Numbers
- The Company's sole meaningful near-term revenue source, Celestial AI purchase orders first disclosed in April 2023, was destroyed by the alleged NDA breach
- POET reported a net loss equal to negative 5,858% of its $2.3 million cumulative revenue since 2020
- Shares outstanding surged 303% from 38 million to 153 million between late 2022 and early 2026, underscoring the Company's dependence on equity raises rather than product sales
- The 2025 Annual Report's SOX certifications attested to disclosure of all fraud and material changes to internal controls, yet the lawsuit chronicles that management failed to prevent confidential information from being broadcast on social media
- POET's own risk factor language acknowledged the Company "may be treated as a PFIC," yet the complaint alleges this disclosure materially understated the likelihood and consequences
The Tax Compliance Gap
Separately, the action claims POET's internal processes failed to accurately assess and disclose the severity of its Passive Foreign Investment Company status. It is alleged that the 2025 Annual Report used hedging language ("we believe that we may be treated as a PFIC") when the Company's financial profile, dominated by passive income with negligible operating revenue, made PFIC classification near-certain. U.S. shareholders face punitive tax rates and compounding IRS interest when holding PFIC shares without proper elections.
See if you can recover losses or call (888) SueWallSt.
"The complaint raises serious questions about whether investors received accurate information about the operational safeguards protecting POET's most critical business relationships and tax obligations." -- Joseph E. Levi, Esq.
Calculate your potential recovery or contact Joseph E. Levi, Esq. at (888) SueWallSt.
ABOUT SUEWALLST -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, SueWallSt is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.
Frequently Asked Questions About the POET Lawsuit
Q: Who is eligible to join the POET investor lawsuit? A: Investors who purchased POET stock or securities between April 1, 2026 and April 27, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: How much did POET stock drop? A: Shares fell approximately 47.3%, a decline of $7.15 per share, after the Company disclosed the cancellation of all Celestial AI purchase orders due to an alleged NDA 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 SueWallSt for a free, no-obligation evaluation at jlevi@SueWallSt.com or (888) SueWallSt. No immediate action is required to remain eligible as a class member.
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 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 is the POET lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is June 29, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (888) SueWallSt
Fax: (212) 363-7171
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