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MPWR.US
id: 1488
Monolithic Power Systems (MPWR) Securities Fraud Case
W.D. Washington
Court2:25-cv-00220
Case number02/08/2024
Class period Start11/08/2024
Class period End04/07/2025
Lead Plaintiff motion deadline- $MPWR investors filed a lawsuit against Monolithic Power Systems, alleging the company misled shareholders about the quality and reliability of its power management solutions used in AI data centers.
- On November 11, 2024, a report revealed that Nvidia had canceled half of its outstanding orders from Monolithic. Following this news, $MPWR dropped over 30%.
Case Details:
Between February 8, 2024, and November 8, 2024, Monolithic Power Systems repeatedly assured investors that its power management components were industry-leading and crucial for AI data centers, particularly for Nvidia’s GPUs. The company highlighted strong demand, revenue growth, and market leadership, claiming its products were outperforming competitors.
However, Monolithic allegedly failed to disclose that its power solutions suffered from significant performance and quality control issues, which negatively affected the GPUs they powered, including those from Nvidia, its largest customer. Despite publicly stating that these issues had been resolved, internal reports indicated that the company struggled to fix known defects, damaging its relationship with Nvidia.
On October 30, 2024, Monolithic reported an unexpected slowdown in its Enterprise Data segment, missing revenue estimates by nearly 13%. The company attributed the decline to shifting customer order patterns but did not disclose Nvidia’s dissatisfaction.
Then, on November 11, 2024, a research report revealed that Nvidia had canceled half of its orders with Monolithic due to ongoing performance issues and was shifting to competitors. The report stated that Nvidia engineers had lost confidence in Monolithic’s products and had started placing orders with alternative suppliers.
Following these revelations, $MPWR dropped over 30%, wiping out hundreds of millions in investor value.
Based on these events, $MPWR investors filed a lawsuit against Monolithic Power Systems, claiming the company:
- It misled investors about the quality and reliability of its power management solutions.
- It failed to disclose the true risks of its relationship with Nvidia and ongoing product issues.
Investors believe Monolithic misrepresented its product performance and business stability.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Fraud,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
11/11/2024
Filing date
02/04/2025
Lead Plaintiff Deadline
04/07/2025