Super Micro Launches Independent Investigation After Indictment Against Insiders

• Super Micro added that its board members Scott Angel and Tally Liu are leading the independent investigation. 
• Earlier in March, three individuals associated with the company had been indicted in connection with a conspiracy to smuggle high-performance computer servers of Nvidia to China. 
• Super Micro said that it has also launched an internal review of its global trade compliance program.

Super Micro Computer, Inc. (SMCI) said on Tuesday that it has started an independent investigation related to the recent indictment of three insiders ​on charges of committing export-control violations.

Earlier in March, the company had said that it had been informed by the U.S. Attorney's Office for the Southern District of New York about the indictment of three individuals associated with the company in connection with a conspiracy to smuggle high-performance computer servers of Nvidia Corp. (NVDA) to China.

This included co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang ​Chang, and contractor Ting-Wei Sun. However, the company itself had not been named in the charges.

Investigation Details

Super Micro said that its board members Scott Angel and Tally Liu are leading the independent investigation.

The board has hired Munger, Tolles & Olson LLP to run the investigation, with AlixPartners supporting forensic accounting. Both firms are coordinating with auditor BDO USA and reporting directly to Angel and Liu. The company has not set a timeline and plans to provide an update once the review finishes.

Simultaneously, Super Micro said that it has also launched an internal review of its global trade compliance program.

“Supermicro is committed to protecting America’s advanced technologies and intellectual property,” said Charles Liang, president and CEO of the company. “Our internal review and the independent directors’ investigation are being conducted in line with our commitment to ensuring our technology is handled with the highest level of ethical and legal scrutiny.”

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around SMCI stock dipped from ‘neutral’ to ‘bearish’ territory over the past 24 hours amid ‘low’ message volumes.

One user said that despite the worst-case scenario being the CEO’s involvement in the issue, the stock was still a good long-term hold at current price levels.

Shares of SMCI have declined more than 26% in the past year.

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