Multiple law firms have filed class-action lawsuits against Super Micro Computer, Inc. (NASDAQ: SMCI) after a Department of Justice indictment alleged a $2.5 billion illegal export scheme, causing the company’s stock to fall $10.26 per share.
"Corporate officers have a duty to ensure their companies' public statements are accurate and complete," Joseph E. Levi of Levi & Korsinsky, LLP, said. "When executives certify SEC filings, they accept personal responsibility for the truthfulness of those disclosures, including the adequacy of export compliance controls."
The lawsuits, filed by firms including The Schall Law Firm, Levi & Korsinsky, and Kahn Swick & Foti, cover investors who purchased securities between April 30, 2024, and March 19, 2026. The core allegation is that Super Micro made false and misleading statements by not disclosing that a significant portion of its revenue came from illegal server sales to China. On March 20, 2026, shares fell 33.3% after the DOJ announced the indictment.
The legal actions name CEO Charles Liang and CFO David Weigand as individual defendants, asserting they had control over the company's public statements and financial reporting. The complaints highlight that both executives signed Sarbanes-Oxley certifications attesting to the adequacy of internal controls, which the lawsuits claim were materially false given the alleged multi-billion-dollar export violations.
The lawsuits leverage Section 20(a) of the Securities Exchange Act of 1934, which imposes joint and several liability on individuals who "control" a company found to have violated securities laws. The complaints contend that Liang and Weigand were aware of or recklessly disregarded the illegal export scheme that fueled revenue growth.
The indictment, unsealed on March 19, 2026, charged three individuals connected to the company, including co-founder and Senior VP Yih-Shyan Liaw and a general manager in the Taiwan office. This suggests the alleged scheme was operated at senior levels of management. The deadline for investors to file for lead plaintiff status is May 26, 2026.
The sharp stock decline to $20.53 per share reflects the market's reaction to both the alleged fraud and the potential for significant financial penalties and reputational damage. The lawsuits seek to recover damages for investors who suffered losses during the class period.
The legal proceedings put the effectiveness of Super Micro's internal compliance and the accountability of its senior leadership under intense scrutiny. For investors, the 33.3% stock price collapse serves as a stark reminder of the risks associated with regulatory non-compliance. The outcome of these lawsuits will be a key indicator for the company's future governance, with the lead plaintiff deadline of May 26, 2026, as the next major milestone.
This article is for informational purposes only and does not constitute investment advice.
