Super Micro Computer, Inc. ( SMCI ) shares are trading lower Thursday after shareholders filed a lawsuit against the company in federal court in San Francisco alleging failure to disclose risks associated with export controls on sales to China.

Super Micro stock is feeling bearish pressure. What’s weighing on SMCI shares?

Shareholder Lawsuit Alleges Undisclosed China Exposure

According to Reuters, the proposed class action accuses the company of committing securities fraud by concealing its dependence on sales to China that allegedly violated U.S. export laws

Shareholders claim Super Micro overstated its business prospects and inflated its stock price by failing to disclose that a significant portion of server sales went to companies in China, as well as alleged weaknesses in compliance with export control laws.

The lawsuit follows criminal charges announced against a co-founder and two others linked to the company related to the alleged smuggling of servers containing Nvidia chips. Prosecutors said an unnamed Southeast Asian company purchased $2.5 billion of servers in 2024 and 2025 as part of the scheme.

Super Micro said it is cooperating with the government and that the alleged conduct violates company policies. Neither Super Micro nor Nvidia was criminally charged, and Nvidia is not a defendant in the shareholder lawsuit.

The complaint also names CEO Charles Liang and CFO David Weigand as defendants and seeks unspecified damages for investors between April 30, 2024, and March 19, 2026.

Super Micro Stock Edges Lower

SMCI Price Action: At the time of publication, Super Micro shares are trading 1.83% lower at $23.61, according to data from Benzinga Pro.

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