POET Technologies Plunges 34.6% After Marvell Cancels Orders, Lawsuits Mount

In late April 2026, POET Technologies (POET) disclosed that Marvell Semiconductor (MRVL) had canceled all purchase orders related to Celestial AI, sending POET's stock down 34.6%. The cancellation triggered a wave of federal securities class action lawsuits alleging that POET made misleading statements about its tax status and confidentiality obligations.

Details of the Action

Marvell Semiconductor canceled all purchase orders tied to Celestial AI, which represented a key revenue stream for POET Technologies. The total value of the canceled orders has not been disclosed, but they were a significant portion of POET's expected revenue.

Company's Position

POET Technologies has not yet issued an official statement regarding the cancellation. However, the company now faces multiple class action lawsuits claiming it misled investors about its status as a passive foreign investment company (PFIC) under U.S. tax law, which could impose additional tax burdens on U.S. shareholders.

Precedents and Context

PFIC cases are relatively rare in the technology sector but can create significant tax complications for individual investors. The sudden order cancellation by Marvell raises questions about the reliability of POET's future contracts.

Potential Financial Impact

With the stock down 34.6%, the market value loss is estimated in the tens of millions of dollars. The lawsuits could lead to additional compensation if the allegations are proven, further pressuring the company.