Investors Alert: Monolithic Power Systems Faces Class Action Lawsuit Over Securities Fraud Allegations
Investors Alert: Monolithic Power Systems Faces Class Action Lawsuit Over Securities Fraud Allegations
In a significant legal development for shareholders, Pomerantz LLP has announced a class action lawsuit against Monolithic Power Systems, Inc. (NASDAQ: MPWR), urging investors who have experienced losses to take action before the impending deadline. This lawsuit highlights serious allegations of securities fraud and raises concerns regarding the company's conduct in the financial markets.
Overview of the Allegations
The class action revolves around claims that Monolithic, along with certain officers and directors, may have engaged in deceptive practices that impacted the value of its securities adversely. Investors who acquired shares during the specified class period are particularly encouraged to come forward and assert their rights. Those wishing to join the litigation must act before April 7, 2025, to be appointed as lead plaintiffs.
The catalyst for this class action arose on October 30, 2024, when Monolithic Power Systems disclosed disappointing fiscal results for its third quarter. The company's report revealed a significant decline in revenue from its Enterprise Data segment, dropping to $184 million and underwhelming consensus estimates by 13%. In a subsequent investor call, CFO Bernie Blegen explained how changes in customer order patterns had deviated significantly from historical trends, damaging sales during that financial quarter. Following this announcement, Monolithic’s share price plummeted by about 17.45%, closing at $759.30 per share the next day.
Following Developments
Confounding matters for Monolithic, an analyst report released on November 11, 2024, detailed severe supply and performance issues, specifically regarding Nvidia’s decision to cancel half of its outstanding orders with Monolithic. Nvidia's choice to withdraw from using Monolithic's power modules for its high-performance Blackwell GPU variants was driven by ongoing concerns about product reliability, leading them to seek alternative suppliers. This development resulted in an additional 14.97% drop in Monolithic's stock price, closing at $647.31 per share just days later.
Pomerantz LLP, a leading law firm with a prestigious reputation in corporate and securities class action litigation, continues its legacy of fighting for the rights of investors. With over 85 years of experience, the firm has achieved considerable financial settlements for class members in various cases and remains committed to prosecuting cases of securities fraud and corporate misconduct.
How to Get Involved
Affected investors are encouraged to contact Pomerantz LLP at 646-581-9980 or by email to email protected] Potential plaintiffs should include their contact information and details of their stock purchases in their inquiries. More information, including copies of the complaint and updates on the case, can be found at [Pomerantz Law Firm’s website.
Conclusion
This class action comes amidst challenging times for Monolithic Power Systems, as investors grapple with the implications of performance revelations and corporate governance issues. As the case unfolds, shareholders who believe they have suffered losses due to the company’s actions need to act quickly to secure their positions within this developing litigation.
Topics Financial Services & Investing）
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