1. Class action filed against MPWR for misleading product performance claims. 2. Allegations include significant quality control issues with key products. 3. MPWR's relationship with Nvidia reportedly damaged due to these issues. 4. Stock price dropped over 30% after performance issues were disclosed. 5. Shareholders can participate in the class action litigation.
Quality control issues with strategic customer Nvidia can severely harm MPWR's reputation and sales, similar to past incidents where companies faced stock crashes post-revelation of product flaws.
The allegations directly threaten MPWR's financial health and stock price, indicating a significant risk for shareholders due to investor sentiment shifting negatively.
Immediate investor reactions to legal actions and product performance implications could lead to rapid stock valuation changes, akin to impacts seen with other tech company scandals.
that a class action was filed on behalf of all purchasers of Monolithic Power Systems Inc. (NASDAQ: MPWR) common stock between February 8, 2024 and November 8, 2024. Monolithic is a provider of power management components used in electronic systems.
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According to the complaint, during the class period, defendants failed to disclose: (a) that Monolithic's voltage regulator modules and power management integrated circuits were suffering from significant performance and quality control issues; (b) that the defects listed in (a), above, had, in turn, negatively impacted the performance of certain products offered by Nvidia in which such products were used; (c) that Monolithic had failed to adequately address and resolve known issues affecting the performance of the power management solutions the Company supplied to Nvidia; (d) that Monolithic's relationship with Nvidia – the Company's most important customer – had been irreparably damaged due to the significant performance and quality control problems affecting the products it supplied to Nvidia and the Company's failure to adequately address such issues, as listed in (a)-(c), above; and that as a result of (a)-(d), above, Monolithic was acutely exposed to material undisclosed risks of significant business, financial, and reputational harm.
When the truth was revealed, the price of Monolithic stock declined more than 30% from its class period high of more than $959 per share to approximately $647 per share by the end of the class period.
You may be eligible to participate in the class action against Monolithic Power Systems Inc. Shareholders who want to serve as lead plaintiff for the class must file papers with the court by April 7, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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SOURCE Robbins LLP