Monolithic Power Systems faces investigation
Law firm launches probe into Monolithic Power Systems executives following Nvidia order cancellations and reported performance issues.
New Orleans/New York – The law firm Kahn Swick & Foti, LLC (KSF) has initiated an investigation into the officers and directors of Monolithic Power Systems, Inc. (MPWR). This action follows an analyst report published in November 2024, which disclosed that Nvidia, Monolithic's largest customer, intends to cancel half of its outstanding orders and significantly reduce its allocation of Monolithic's products for next-generation chips due to "performance issues".
The company and certain executives are already facing a securities class action lawsuit, alleging they failed to disclose material information during a specific period. KSF is examining whether Monolithic's officers and/or directors breached their fiduciary duties to shareholders or violated state or federal laws.
According to the Edgewater Research report dated November 11, 2024, Nvidia had canceled half of Monolithic Power Systems' orders. Furthermore, the report stated that Nvidia engineers had "lost confidence" in the company's products and decided to shift to competitors as primary suppliers.
KSF is inviting individuals with information pertinent to the investigation, or long-term holders of Monolithic shares, to contact them at no obligation. The ongoing securities class action lawsuit centers on claims of inadequate disclosure.