By Jonathan Stempel<\/p>\n
March 25 (Reuters) – Shareholders of Super Micro Computer (SMCI<\/a>) sued the Silicon Valley server maker on Wednesday, accusing it of committing \u200csecurities fraud by concealing its dependence on sales to China that \u200cviolated U.S. export laws, leading to criminal smuggling charges involving Nvidia<\/a> chips against a co-founder \u200band two others linked to the company.<\/p>\n In a proposed class action filed in San Francisco federal court, shareholders said Super Micro overstated its business prospects and inflated its stock price by knowingly failing to disclose that a significant portion \u200cof server sales went to \u2060companies in China, and the company had material weaknesses in its compliance with export control laws.<\/p>\n Super Micro shares sank 33% \u2060on March 20 after criminal charges were announced a day earlier against Yih-Shyan Liaw, a co-founder and director; Ruei-Tsang Chang, a sales manager in Taiwan; and \u200bTing-Wei Sun, \u200ba contractor.<\/p>\n The decline wiped out about $6.1 billion \u200bof the San Jose, California-based \u200ccompany’s market value, and Liaw resigned from Super Micro’s board.<\/p>\n Other defendants in the civil lawsuit are Chief Executive Charles Liang and Chief Financial Officer David Weigand. Super Micro did not immediately respond to requests for comment.<\/p>\n Prosecutors in the criminal case said Liaw and Chang directed an unnamed company in Southeast Asia \u200cto buy servers with Nvidia’s chips, and \u200bthat the company bought $2.5 billion of servers \u200bin 2024 and 2025.<\/p>\n Super Micro \u200bhas said it is cooperating with the government, and the \u200calleged criminal conduct violates its policies. Neither \u200bSuper Micro nor Nvidia \u200bwas criminally charged, and Nvidia is not a defendant in the shareholder lawsuit.<\/p>\n It is common for shareholders to sue companies after unexpected negative \u200bnews causes stock prices \u200cto decline.<\/p>\n Wednesday’s lawsuit seeks unspecified damages for Super Micro investors between \u200bApril 30, 2024, and March 19, 2026.<\/p>\n (Reporting by Jonathan Stempel in \u200bNew York; Editing by Matthew Lewis)<\/p>\n","protected":false},"excerpt":{"rendered":"By Jonathan Stempel March 25 (Reuters) – Shareholders of Super Micro Computer (SMCI) sued the Silicon Valley server…\n","protected":false},"author":2,"featured_media":546808,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,84865,4321,1431,2793,46633],"class_list":["post-546807","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-criminal-charges","tag-nvidia","tag-shareholders","tag-silicon-valley","tag-super-micro-computer"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/546807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=546807"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/546807\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/546808"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=546807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=546807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=546807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}