POET Shareholder Alert: POET Technologies Inc. Securities Class Action Lawsuit - Investors Should Contact SueWallSt

Important Notice Regarding Alleged PFIC Tax Status Misrepresentations That Exposed U.S. Shareholders to Severe Tax Liabilities

NEW YORK, June 4, 2026 /PRNewswire/ -- SueWallSt notifies investors in POET Technologies Inc. (NASDAQ: POET) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between April 1, 2026 and April 27, 2026. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

POET shares collapsed 47.3%, a loss of $7.15 per share, after corrective disclosures revealed the Company had misrepresented its tax classification and breached confidentiality obligations with a major customer. The lead plaintiff deadline is June 29, 2026.

The Alleged Passive Foreign Investment Company Misclassification

A Canadian photonics company generating just $2.3 million in total revenue since 2020 and reporting a 2025 net loss of negative 5,858% of revenue, POET carried financial characteristics that made PFIC classification virtually certain, the lawsuit contends. Under U.S. tax law, a foreign corporation qualifies as a PFIC when 75% or more of gross income is passive or when 50% or more of asset value produces passive income. With minimal operating revenue and a cash-heavy balance sheet inflated by a 303% increase in shares outstanding between late 2022 and early 2026, the Company's PFIC status was not a remote possibility but an expected outcome.

How PFIC Status Allegedly Affected Shareholder Value

The complaint alleges POET's 2025 Annual Report acknowledged potential PFIC classification but framed it as uncertain, using equivocal language stating the Company "may be treated" as a PFIC. This framing allegedly understated the severity and likelihood of the classification. For U.S. holders, PFIC status triggers punitive tax consequences:

• Gains on PFIC shares are taxed at the highest marginal income tax rate regardless of the investor's actual bracket
• A compounding interest charge applies to deferred gains, creating escalating tax liability for each year shares are held
• Investors who fail to make timely "QEF" elections face what tax practitioners describe as "compliance hell" with the IRS
• The "once a PFIC, always a PFIC" rule means tax consequences persist for the entire holding period
• PFIC classification makes the stock structurally less attractive to U.S. investors, threatening valuation and liquidity
• POET's own filing admitted the Company believed it "may be treated as a PFIC for the preceding taxable year"

Wolfpack Research issued a report on April 14, 2026 identifying POET as a PFIC, noting that multiple tax experts found the classification "obvious." POET stock fell 8.08% on this news. One day later, POET effectively confirmed the PFIC allegation by announcing it would provide QEF election materials to U.S. shareholders and that its board intended to redomicile the Company in the United States to eliminate future PFIC risk.

The Alleged Dilution-Driven PFIC Trap

The action claims POET's real business model was selling stock, not products. By expanding shares outstanding from approximately 38 million to 153 million in just over three years while generating negligible revenue, the Company allegedly accumulated passive assets that made PFIC classification inevitable. This dilution cycle allegedly created a tax trap for the very U.S. investors purchasing those shares.

"This case presents important questions about PFIC disclosure obligations in the photonics and semiconductor sector. When a company's own financial profile makes adverse tax classification highly probable, investors deserve more than equivocal risk factor language." -- Joseph E. Levi, Esq.

Submit your information to join this case or contact Joseph E. Levi, Esq. at (888) SueWallSt.

ABOUT SUEWALLST -- Over the past 20 years, SueWallSt has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, SueWallSt has ranked in ISS Securities Class Action Services' Top 50 Report. Applications to serve as lead plaintiff must be filed by June 29, 2026.

Frequently Asked Questions About the POET Lawsuit

Q: What is the POET class action lawsuit about? A: A securities class action has been filed against POET Technologies Inc. (NASDAQ: POET) alleging materially false and misleading statements between April 1, 2026 and April 27, 2026. Shares fell approximately 47.3% after the truth was revealed, causing significant losses for shareholders.

Q: How much did POET stock drop? A: Shares fell approximately 47.3%, a decline of $7.15 per share, after the Company disclosed the cancellation of all Celestial AI purchase orders due to a confidentiality breach. Investors who purchased shares during the class period at artificially inflated prices may be entitled to compensation.

Q: Who is eligible to join the POET investor lawsuit? A: Investors who purchased POET stock or securities between April 1, 2026 and April 27, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What if I already sold my POET shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: What do POET investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible as a class member.

Q: What court was the POET class action filed in? A: The case was filed in the United States District Court for the District of New Jersey, governed by the Private Securities Litigation Reform Act of 1995.

CONTACT:

SueWallSt

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (888) SueWallSt

Fax: (212) 363-7171

SOURCE SueWallSt.com