Key Takeaways:
A class action lawsuit has been filed against Super Micro Computer Inc. after its stock price fell 33.3 percent following a U.S. Justice Department indictment of individuals for illegally exporting servers to China.
"A significant portion of the Company's sales of servers were to companies based in China [in] violation [of] U.S. export control laws," the complaint filed in federal court alleges.
The lawsuit follows a March 19 announcement from the DOJ that three individuals, including a company co-founder and a general manager, were indicted for a scheme to divert approximately $2.5 billion worth of servers with advanced AI chips. On the news, Super Micro's stock price fell $10.26 to close at $20.53 per share on March 20, 2026.
The law firm Faruqi & Faruqi, LLP, reminded investors who purchased securities between April 30, 2024, and March 19, 2026, of the May 26, 2026, deadline to seek the role of lead plaintiff.
The Justice Department alleges that Yih-Shyan Liaw, a Super Micro co-founder and director, Ruei-Tsang Chang, a general manager in the Taiwan office, and a third-party broker conspired to systematically divert servers containing high-performance GPUs to China without the required U.S. Commerce Department licenses.
Super Micro issued a statement noting the company itself was not named as a defendant and that it is cooperating with the government's investigation. The company confirmed it placed the two employees on administrative leave and terminated its relationship with the contractor.
The stock's sharp decline to its lowest point since the previous year tests a key technical support level for investors. The outcome of the class action and the ongoing government investigation represent significant legal and financial risks for the company, with the May 26 lead plaintiff deadline being the next major catalyst for shareholders.
This article is for informational purposes only and does not constitute investment advice.
