Pomerantz Law Firm Issues Investor Alert Regarding Class Action Lawsuit Against Monolithic Power Systems, Inc.

Investor Alert: Class Action Lawsuit Against Monolithic Power Systems, Inc.

Pomerantz LLP, a prominent law firm specializing in securities class actions, has recently announced the filing of a class action lawsuit against Monolithic Power Systems, Inc. (NASDAQ: MPWR). This legal action aims to address the concerns of investors who have incurred losses due to the alleged securities fraud and improper business practices by Monolithic. Investors who purchased or acquired Monolithic securities during the class period are encouraged to take note of the upcoming deadlines for involvement in this case.

Overview of the Lawsuit

The class action is in response to significant discrepancies in Monolithic’s financial disclosures, primarily relating to its Enterprise Data segment. On October 30, 2024, Monolithic released its third-quarter financial results, revealing a surprising decline in revenue for this segment. The reported Enterprise Data revenue fell to $184 million, which was nearly 13% below analysts' consensus estimates. Chief Financial Officer Bernie Blegen acknowledged during an investor call that customer order trends had substantially dropped, indicating continuing adverse impacts on sales through the fourth quarter.

The market reacted swiftly to this news. On October 31, 2024, Monolithic’s stock price plummeted by 17.45%, closing at $759.30 per share, reflecting investor concerns about the company's financial health.

Consecutive Downturn

The situation deteriorated further when reports emerged that Nvidia had canceled half of its orders from Monolithic due to ongoing performance issues with the company's power modules. The announcement from Edgewater Research on November 11, 2024, indicated that Nvidia engineers had lost trust in Monolithic’s products. Following this revelation, Monolithic's stock price faced another sharp decline, falling nearly 15% on the same day, closing at $647.31 per share.

As the situation unfolded, investors perceived mounting risks associated with Monolithic's future performance. Concerns over the company’s ability to fulfill orders and maintain relationships with significant clients like Nvidia have led many to reassess their holdings in the company.

Call to Action

Pomerantz LLP urges investors affected by Monolithic’s declining stock price to reach out if they wish to join the class action suit. Interested parties may contact Danielle Peyton at Pomerantz for further information and instructions to ensure their rights are preserved. Investors have until April 7, 2025, to initiate their involvement in the case, and those who wish to be appointed as Lead Plaintiffs are particularly encouraged to act promptly.

For further details on the lawsuit and to access the complaint, investors can visit Pomerantz Law's website.

Conclusion

As a leading firm in the realm of class action litigation, Pomerantz LLP has a storied history of advocating for victims of corporate malpractice and securities fraud. With more than 85 years of experience, the firm continues its commitment to pursuing justice on behalf of aggrieved investors. Monolithic Power Systems now finds itself at a critical juncture, and the coming months will be pivotal for both the company and the investors who are watching closely.

For more inquiries, reach out directly to Danielle Peyton at 646-581-9980 or via the firm's email.

Stay informed and prepared by understanding all your options as this legal process unfolds.