#United States #New York #Class Action #Securities Fraud #Monolithic Power

Pomerantz Law Firm Launches Class Action Lawsuit Against Monolithic Power Systems

In a significant development for investors, the Pomerantz Law Firm has initiated a class action lawsuit targeting Monolithic Power Systems, Inc. (NASDAQ: MPWR). This legal action arises from allegations that Monolithic and certain officials may have participated in unlawful business practices related to securities fraud. Investors who have sustained losses owing to their investments in Monolithic are urged to examine their legal options.

Background of the Case

The complaint revolves around the decline in Monolithic's Enterprise Data revenues, which were revealed to have dropped significantly during their third fiscal quarter of 2024. Specifically, the reported revenue dipped to $184 million, falling nearly 13% short of analysts' expectations. During an investor call, CFO Bernie Blegen acknowledged a concerning downturn in customer order patterns, suggesting a downward trajectory that could further impact sales in the Enterprise Data segment. Following this revelation on October 30, 2024, Monolithic's stock suffered a steep decline of 17.45%, plummeting $160.51 per share.

The situation worsened for Monolithic on November 11, 2024, when analysts from Edgewater Research disclosed that Nvidia had canceled half of its outstanding orders with Monolithic, citing ongoing performance issues with the company's power modules. This setback further eroded confidence in Monolithic's capabilities, prompting Nvidia to seek alternative suppliers for its latest GPU variants. The resulting market reaction saw Monolithic's shares drop an additional 14.97% on that day, further signaling distress among investors.

Legal Proceedings and Next Steps

Investors affected by these developments now have an opportunity to seek justice through the filing of the class action lawsuit. Those who believe they have a valid claim are encouraged to step forward by contacting Danielle Peyton at Pomerantz LLP. The law firm advises interested parties to provide personal information including their mailing address, phone number, and details of the shares purchased. Notably, potential lead plaintiffs have until April 7, 2025, to make their intentions known to the court.

Pomerantz LLP, a reputable law firm with a rich legacy in corporate and securities litigation, emphasizes its dedication to representing investors’ rights. The firm has a longstanding history of pursuing compensation for victims of corporate misconduct and securities fraud, having secured numerous multimillion-dollar settlements in prior cases.

Conclusion

With attention now focused on Monolithic Power Systems amid allegations of securities fraud, investors should consider their options carefully. The forthcoming class action lawsuit presents a pivotal opportunity for those who have lost out to reclaim some of their investments. As the legal process unfolds, it remains to be seen how this situation will resolve for Monolithic and its stakeholders.