Super Micro Faces Lawsuit Over Alleged $2.5B China Sales

Tom Brennan

·May 20 2026, 14:56

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Key Takeaways

Super Micro Computer faces a class-action lawsuit alleging an illegal scheme to sell $2.5 billion in AI servers to China, violating U.S. export controls.
The company's stock fell 19 percent, 32.6 percent, and 33 percent after three separate disclosures related to compliance probes, an auditor resignation, and a DOJ indictment.
Investors who purchased stock between Feb. 2, 2024, and March 19, 2026, have until May 26, 2026, to seek lead plaintiff status in the case.

Multiple law firms are seeking plaintiffs for a class-action lawsuit against Super Micro Computer Inc. (NASDAQ: SMCI), alleging the company engaged in a $2.5 billion scheme to illegally sell AI servers to China. Investors have until May 26, 2026, to move the court to serve as lead plaintiff.

According to the lawsuit, defendants made false or misleading statements and failed to disclose that a significant portion of Super Micro’s server sales, powered by Nvidia Corp. chips, were to companies in China in violation of U.S. export control laws. The complaint alleges these actions were concealed through a passthrough entity in Southeast Asia.

The case against Super Micro outlines three major disclosures that led to sharp declines in its stock price. On Aug. 28, 2024, shares fell 19 percent after the company announced it would delay filing its annual report to investigate its own compliance with export laws. The stock dropped another 32.6 percent on Oct. 30, 2024, when Super Micro disclosed that its auditor, Ernst & Young, had resigned after being unable to rely on management's representations regarding at least eleven export transactions.

The full extent of the allegations was revealed on March 19, 2026, when a Department of Justice Grand Jury Indictment against Super Micro's co-founder, Yih-Shyan "Wally" Liaw, was unsealed. The indictment charged Liaw and others with conspiring to divert servers to China, leading to a 33 percent drop in Super Micro's share price the following day. Law firms including Hagens Berman, Rosen Law Firm, and Faruqi & Faruqi are representing investors in the matter.

The series of disclosures and the resulting stock declines highlight the material risk of non-compliance with U.S. export laws, particularly concerning advanced AI technology. Investors will now watch for the court's decision on the lead plaintiff by the May 26, 2026 deadline, which will set the direction for the litigation.

This article is for informational purposes only and does not constitute investment advice.