Supermicro Investor Sues Over Affiliates’ AI Smuggling Charges

Super Micro Computer Inc. and top executives concealed that a ring of individuals illegally smuggled servers with cutting-edge NVIDIA Corp. chips to China, a proposed class action said.

The server maker failed to alert investors that a significant amount of sales were to China-based companies, that this violated US export control laws, and that Supermicro had lackluster internal controls to ensure it was complying with these regulations, said the complaint filed in the US District Court for the Northern District of California on Wednesday.

Then the US Department of Justice on March 19 said it unsealed an indictment against a ...