#USA #Class Action #Securities Fraud #Kirkland #Monolithic Power

Monolithic Power Class Action Alert

Investors who bought or acquired shares in Monolithic Power Systems, Inc. during the class period from February 8, 2024, to November 8, 2024, are being urged to take action. A securities fraud class action has been lodged against the company, and the window to enroll as lead plaintiff is closing soon. The deadline for inquiries is set for April 7, 2025.

Berger Montague PC, the law firm representing the investors, has outlined several key allegations in this case. It appears that senior management of Monolithic Power misrepresented crucial information regarding the performance of their voltage regulator modules and power management integrated circuits. These products were integral to electronic systems and played a significant role in Nvidia Corporation's product line—Nvidia being one of the largest customers of Monolithic Power.

Nature of the Allegations

The lawsuit claims that the alleged performance inadequacies significantly compromised the quality of Nvidia's products, leading to a deteriorated relationship between the two companies. Investors may have suffered financial losses due to misleading statements made by Monolithic Power and its executives.

The pivotal moment for this downturn occurred on October 30, 2024, when Monolithic Power disclosed disappointing quarterly results from its Enterprise Data segment. Revenue had plummeted to $184 million—down from $187 million the preceding quarter—leading to a fall in share prices exceeding 17% within just one trading day. Analysts had anticipated revenues closer to $211 million.

Just days later, on November 11, 2024, a report from Edgewater Research added fuel to the fire, revealing that Nvidia had canceled half of its outstanding orders from Monolithic Power. The report also mentioned that due to performance concerns, Nvidia was seeking suppliers other than Monolithic Power for its next-generation Blackwell chips. This revelation further pressured Monolithic Power's stock price, which dropped 15% more in a matter of days.

The Role of Lead Plaintiffs

In a class action, the lead plaintiff serves as the representative for the class, directing litigation and ensuring that all members' rights are protected. This role typically goes to investors who have the most significant financial interest, acting on behalf of their peers. However, investors can choose to remain as inactive members, with their potential recovery not dependent on their participation in the lead role.

If you fall within the affected time frame and seek more information or assistance regarding joining this class action lawsuit, consider reaching out to Berger Montague’s representatives, Andrew Abramowitz or Peter Hamner, who are ready to provide clarity regarding your rights as an investor and help you navigate this legal challenge.

This opportunity is crucial for those who have placed their trust and money in Monolithic Power, as claiming your rights in this class action may provide restitution for financial damages incurred due to the company's alleged misleading practices. Take action now to secure your place before the deadline passes.

For more information, prospective lead plaintiffs and other interested parties should contact Berger Montague at their Philadelphia office or via their listed emails to learn the next steps in participating in this significant class action lawsuit.