Shareholders sued Super Micro Computer on Wednesday, accusing the Silicon Valley server maker of securities fraud. The lawsuit claims the company hid its dependence on sales to China that violated U.S. export laws.
The lawsuit follows criminal smuggling charges announced on March 19. Federal prosecutors charged co-founder and director Yih-Shyan Liaw, Taiwan-based sales manager Ruei-Tsang Chang, and contractor Ting-Wei Sun. The charges involve Nvidia chips allegedly shipped to China in violation of export controls.
Super Micro shares plunged 33% the day after prosecutors announced the charges. That drop erased roughly $6.1 billion from the San Jose-based company’s market value. Shortly after, Liaw resigned from Super Micro’s board.
What Shareholders Allege
The proposed class action was filed in San Francisco federal court. Shareholders argue Super Micro overstated its business prospects and inflated its stock price. Specifically, they claim company executives knowingly concealed that a significant portion of server sales went to Chinese companies. Additionally, the lawsuit alleges Super Micro had material weaknesses in its export control compliance.
The civil lawsuit names CEO Charles Liang and CFO David Weigand as defendants alongside the company. Super Micro did not immediately respond to requests for comment.
The Criminal Case Details
According to prosecutors, Liaw and Chang directed an unnamed Southeast Asian company to purchase servers containing Nvidia chips. That company allegedly bought $2.5 billion worth of servers in 2024 and 2025.
Super Micro has stated it is cooperating with the government. The company also emphasized that the alleged criminal conduct violates its policies. Notably, neither Super Micro nor Nvidia faces criminal charges. Nvidia is also not named as a defendant in the shareholder lawsuit.
Shareholder lawsuits frequently follow unexpected negative news that causes stock prices to drop. Wednesday’s lawsuit seeks unspecified damages for Super Micro investors who held shares between April 30, 2024, and March 19, 2026.