POET Technologies Races to Scale Production While a Class-Action Threat Looms

POET Technologies finds itself in an unusual spot for a company that just raised $400 million and landed a potential $500 million supply deal: its share price has been hammered by legal uncertainty and macro jitters. The optical chip specialist is trying to juggle a manufacturing ramp-up with a shareholder vote on its corporate structure and a looming class-action deadline — all within the same week in late June.

The market’s recent selloff slammed the stock, with a 23% plunge triggered by a stronger-than-expected US jobs report in May. The economy added 172,000 positions, more than double forecasts, reinforcing expectations that the Federal Reserve will keep interest rates elevated. For a speculative growth name like POET — whose annualized 30-day volatility hovers near 217% — higher-for-longer rates are a punishing headwind. The shares have clawed back some ground, trading Tuesday at €11.04, but that still marks a 41% retreat from the May all-time high of €18.84.

Adding to the pressure is a securities class action filed by Rosen Law Firm, which set a June 29, 2026 deadline for lead plaintiffs. The suit alleges that POET concealed its status as a Passive Foreign Investment Company (PFIC) from US shareholders, exposing them to adverse tax treatment. It also claims the company lost all orders from Celestial AI — since acquired by Marvell Technology — after a management interview breached confidentiality obligations. On the day of that announcement, the stock collapsed 47%.

Should investors sell immediately? Or is it worth buying POET Technologies?

Management’s proposed fix is to move POET’s domicile from Canada to the United States, which would automatically eliminate the PFIC designation. Shareholders will vote on the relocation at the end of June — the same week the class-action deadline expires. That concentration of risk creates an unusually high-stakes window for investors.

On the operational front, the company remains firmly in start-up territory. First-quarter 2026 revenue came in at roughly $503,000, triple the prior-year period but a tiny fraction of what would justify the current valuation. The net loss for the quarter was $12.3 million. Yet the balance sheet has been transformed by the $400 million capital injection from a single institutional investor, structured as a direct placement of shares and warrants. Liquid assets now exceed $429 million, and the company carries almost no debt.

That war chest is earmarked for scaling production tenfold, expanding R&D, and potential acquisitions. POET has also brought in a new chief operating officer, Dr. Sandeep Kumar, a 18-year veteran of Silicon Labs, to oversee the manufacturing ramp in Malaysia. The production push follows a May deal with Lumilens for optical engines based on POET’s electro-optical integration technology. The initial order is worth $50 million, but the framework agreement could see cumulative orders of more than $500 million over five years if performance milestones are met.

The stock’s 72% surge in May was partly fueled by meme-trader enthusiasm, which explains the ferocity of the subsequent correction. Despite the recent drawdown, POET shares are still up roughly 80% year-to-date. That kind of run leaves ample room for further declines if the legal clouds fail to lift. The late-June showdown — the shareholder vote on one side, the class-action deadline on the other — will determine whether the company can refocus the narrative on its production ambitions or remain tangled in courtroom drama.

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