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Super Micro Computer Hit With Securities Fraud Lawsuit Amid Alleged China Sales Cover-Up And Nvidia Chip Smuggling Scandal [Yahoo! Finance]
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Investors Allege Hidden China Sales And Compliance Failures On Wednesday, shareholders claimed SMCI overstated its growth prospects by failing to disclose that a significant portion of its server sales were linked to China, potentially in violation of U.S. export controls, Reuters reported. Don't Miss: Bad Ads Live Forever — See How This AI Helps Fortune 1000 Brands Avoid Them This Energy Storage Company Already Has $185M in Contracts—Shares Are Still Available The lawsuit, filed in federal court in San Francisco, alleges the company had material weaknesses in its compliance systems while presenting a stronger business outlook to investors. Criminal Charges Trigger Stock Collapse The legal action follows criminal charges against co-founder Yih-Shyan Liaw and two others, accused of orchestrating sales of servers containing Nvidia chips to China through a Southeast Asian intermediary. Super Micro's stock plunged 33% on March 20 after the charges were disclosed, wiping o
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