Super Micro Computer Inc. (NASDAQ:SMCI) is one of the 10 Stock Market Casualties You Can’t Ignore Today.
Super Micro plunged by 33.32 percent on Friday to close at $20.53 apiece as investors unloaded portfolios after the US charged and arrested one of its co-founders for allegedly running a scheme to route US-made servers through Taiwan to Southeast Asia.
US prosecutors indicted Yih-Shyan “Wally” Liaw for violating US export controls, particularly for sending US-assembled servers containing Nvidia Corp.’s cutting-edge chips to China and selling the hardware to an unnamed Southeast Asian company for sale to Chinese customers.
Two others—sales manager Ruei-Tsang Chan and contractor Ting-Wei Sun—were similarly charged.
Following the arrest, Super Micro Computer Inc. announced that Liaw had already resigned from the board of directors effective immediately, but it had already lost $6 billion of its market value during the day.
“The conduct by these individuals alleged in the indictment is a contravention of the Company’s policies and compliance controls, including efforts to circumvent applicable export control laws and regulations. Supermicro maintains a robust compliance program and is committed to full adherence to all applicable U.S. export and re-export control laws and regulations,” Super Micro Computer Inc. said in a statement.
It underscored that it has not been named as a defendant in the indictment.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.