Law360 highlights Sbaiti & Company’s Lawsuit Against Vicor Corp. on Behalf of Investors

DALLAS, TEXAS – Sbaiti & Company, led by founder Mazin Sbaiti, filed a class action lawsuit on behalf of several short sellers against Vicor Corporation and its CEO, Patrizio Vinciarelli, as first reported by Law360.

Eight short sellers filed the lawsuit claiming that the company, which manufactures power systems, misled the market by announcing a significant partnership with one of its major customers, but later informed investors that the partnership would not come to fruition, causing financial harm.

The lawsuit, filed in the United States District Court for the Northern District of California, alleges that on July 25, 2023, Vicor’s CEO announced that the company had secured a substantial contract with a significant existing customer. At the time, it was well known that Nvidia and Google were Vicor’s largest and most influential customers. This announcement led to a sharp increase in the company’s stock price.

However, in October 2023, the company revealed that there was no “significant customer” contract, and any future company growth was not expected to occur until 2025 or 2026. Vicor’s stock price immediately fell 20 percent upon this disclosure. The investors allege they suffered direct losses due to needing to cover their short positions upon the false announcement of the new contract.

Sbaiti & Company is proud to represent the short sellers in their fight for justice and fair markets, and look forward to holding Vicor Corporation and its CEO accountable for this alleged misconduct. Sbaiti & Company has served as lead counsel in many shareholder securities and derivative cases in both federal and state courts brought to benefit investors who were defrauded by companies engaging in mismanagement and corporate abuse. Learn more at www.sbaitilaw.com.

Read the full story in Law360 to learn more about the lawsuit: https://www.law360.com/securities/articles/1857828/vicor-hit-with-short-sellers-suit-over-partnership-disclosure