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Allegations
The filed complaint alleges that Monolithic Power Systems Inc. made materially false and/or misleading statements and/or failed to disclose that: (a) Monolithic’s voltage regulator modules and power management integrated circuits were suffering from significant performance and quality control issues; (b) the defects listed in (a), above, had, in turn, negatively impacted the performance of certain products offered by the Company's largest customer, Nvidia, in which such products were used; (c) Monolithic had failed to adequately address and resolve known issues affecting the performance of the power management solutions the Company supplied to Nvidia; (d) Monolithic’s relationship with Nvidia had been irreparably damaged due to the significant performance and quality control.