Law firms investigate Monolithic Power Systems (MPWR) over an ongoing securities fraud lawsuit. The lawsuit alleges the company made false and misleading statements.
The class-action suit covers February to November 2024. It claims MPWR concealed significant performance and quality control issues with its power management chips.
The lawsuit alleges these product defects negatively impacted Nvidia, MPWR's largest customer. These defects caused irreparable damage to the business relationship. Accusers state MPWR falsely assured investors that quality issues were resolved.
Nvidia later shifted business to competitors due to persistent problems. MPWR's stock price fell significantly after this revelation.
A federal court allowed key claims in the lawsuit to proceed. It rejected attempts by defendants to dismiss the case. Company insiders reportedly sold over $160 million worth of stock during the class period.