Lawsuit alleges Monolithic Power misled investors on product quality, causing stock to drop 30%.

Monolithic Power Systems faces a securities fraud lawsuit claiming it misled investors about the quality of its power management chips and its relationship with Nvidia. The lawsuit alleges the company falsely stated quality issues were resolved and that Nvidia continued using its products, which inflated the stock price. After insiders sold $160 million in stock, the truth emerged in late 2024 that Nvidia shifted business to competitors due to ongoing quality problems, causing a 30% stock drop. Legal claims against company officers are under investigation, and shareholders may have options to pursue claims.