Super Micro Computer (NASDAQ:SMCI) is facing a proposed class action lawsuit filed Wednesday in California by shareholders who allege the company failed to disclose violations of U.S. export rules tied to sales involving China.
According to the complaint, investors claim the server manufacturer overstated its share price by not revealing that a significant portion of its server shipments were being sold to Chinese companies and that the firm had serious deficiencies in its compliance with U.S. export control regulations.
The lawsuit names Super Micro Chief Executive Charles Liang and Chief Financial Officer David Weigand as defendants alongside the company.
Shares of Super Micro plunged 33% on March 20 after the U.S. Department of Justice announced criminal smuggling charges against company co-founder and director Yih-Shyan Liaw, Taiwan sales manager Ruei-Tsang Chang and contractor Ting-Wei Sun. The case involves servers equipped with chips from Nvidia.
Federal prosecutors allege that Liaw and Chang used an unnamed firm based in Southeast Asia to purchase servers containing Nvidia chips, generating roughly $2.5 billion in server sales during 2024 and 2025.
The shareholder lawsuit is seeking unspecified damages on behalf of investors who purchased Super Micro stock between April 30, 2024, and March 19, 2026.