According to the Complaint, Vicor Corporation claims that it designs, develops, manufactures, and markets modular power components and complete power systems for delivering electrical power for deployment in high performance computing, industrial equipment and automation, robotics, unmanned and manned vehicles, and satellites, among other areas. Plaintiffs were short sellers of Vicor’s stock during June and July 2023.

The Complaint alleges that on July 25, 2023, Defendant announced on a call that Vicor had entered into a substantial contract with one of its “significant” existing customers which would ramp up at the end of the year in the fourth quarter. Given that it was already known that Vicor’s two major customers were Nvidia and Google, the stock shot up almost immediately. Relying on the news and the price increase, each Plaintiff was forced to cover their short positions—which included certain derivative securities for some, suffering substantial losses. On its Q3 investor call held on October 24, 2023, Vicor announced further struggles, and for the first time revealed the truth that was no “significant customer” contract, and that any growth was expected to occur in the “medium to long term”—meaning, 2025 or 2026. Overnight, the stock came careening back down and settled well below where it had been three months earlier—at or near the price that Plaintiffs believed they would have covered their shorts for a significant profit.