DOJ Indicts Super Micro Execs for China Export Scheme

A class action lawsuit has been initiated against Super Micro Computer, Inc. concerning alleged securities fraud. The suit, filed in the Northern District of California, covers investors who acquired the company's securities between April 30, 2024, and March 19, 2026.

This action follows a March 19, 2026, announcement by the U.S. Justice Department. An indictment unsealed on that date charged three individuals affiliated with Super Micro. They are accused of a scheme to divert substantial quantities of AI servers to China, contravening U.S. export control laws.

The indictment further states these activities were conducted to boost sales and revenue, enabling the illegal sale of approximately $2.5 billion worth of servers between 2024 and 2025. The servers allegedly contained advanced AI chips from Nvidia.

Super Micro stated it was not directly named in the DOJ action but confirmed the individuals' affiliation. Two employees were placed on administrative leave, and a contractor's relationship was terminated. The company asserts its full cooperation with the government's investigation.

On this news, Super Micro's stock experienced a significant decline, falling 33.3% to $20.53 per share on March 20, 2026. The complaint alleges that throughout the Class Period, defendants made false or misleading statements and failed to disclose material adverse facts.

These alleged failures include not disclosing that a significant portion of sales were to Chinese companies, that these transactions violated U.S. export laws, and that the company had material weaknesses in its compliance controls. As a result, positive statements about the company's business were allegedly misleading.