Super Micro Computer Hit With Securities Fraud Lawsuit Amid Alleged China Sales Cover-Up And Nvidia Chip Smuggling Scandal

Super Micro Computer (NASDAQ: SMCI) is facing a class-action lawsuit for allegedly misleading investors about its sales linked to China and compliance risks related to Nvidia chips. The lawsuit follows criminal charges against co-founder Yih-Shyan Liaw and others for orchestrating illegal sales of servers containing Nvidia chips to China, resulting in a 33% stock drop on March 20, erasing approximately $6.1 billion in market value. The lawsuit seeks damages and also names CEO Charles Liang and CFO David Weigand, while Super Micro claims to be cooperating with authorities.