Super Micro sued by shareholders over China-related criminal case against co-founder, others

Shareholders of Super Micro Computer sued the Silicon Valley server maker on Wednesday, accusing it of committing securities fraud by concealing its dependence on sales to China that violated U.S. export laws, leading to criminal smuggling charges involving Nvidia chips against a co-founder and two others linked to ‌the company.

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 of server sales went to companies in China, and the company had material weaknesses in its compliance with export ​control laws.