Overview
Case Number: CV-24-00731863-00CP
Practice Area: Canada Securities Investor Protection
Court: Ontario Superior Court of Justice
Ticker Symbol: NASDAQ Global Select Market: SMCI; CBOE Canada (trading books NEO D, L, and N) and Nasdaq Canada (trading books CX, CX2 and CXD).
Class Period Start Date: 17/04/2024
Class Period End Date: 20/03/2026
Table of Contents
CUSIP: 86805G100
ISIN: CA86805E1051
Status: Process of being refiled in California
TORONTO – March 3, 2026 – Investors who purchased Super Micro Computer, Inc. (“SMCI”) Canadian Depositary Receipts (“CDRs”) on the CBOE Canada or Nasdaq Canada exchanges prior to March 20, 2026 are invited to discuss their legal options for recovering lost capital resulting from those purchases. SMCI’s CDRs, sponsored by Canadian Imperial Bank of Commerce, began trading on April 17, 2024.
TORONTO – December 8, 2025 – The Ontario Court has received the parties’ submissions to discontinue the Ontario class proceeding, with the intention that SMCI CDR investors would refile the Canadian claims in California.
TORONTO – June 10, 2025 – SMCI served a motion record on the Canadian Investors, arguing, among other things, that SMCI is not a responsible issuer in Ontario, Canada, making Ontario an inappropriate forum for an action concerning the CDRs, and that the appropriate forum is the United States.
Case Background
This class action alleges that between April 17, 2024 and March 20, 2026, SMCI misrepresented that its financial reporting complied with PCAOB standards and COSO internal control criteria, when in fact its financial statements, MD&As, and news releases issued during that period were inaccurate.
On August 27, 2024, a third-party report identified accounting irregularities, including undisclosed related-party transactions and product exports to Russia in violation of U.S. export restrictions. On October 30, 2024, SMCI disclosed that Ernst & Young had abruptly resigned as auditor after refusing to issue an audit opinion. SMCI’s share price fell sharply as this information emerged.
On March 19, 2026, the U.S. government unsealed an indictment against three senior SMCI executives for illegal conduct related to sales and improper revenue recognition.
Important Documents
Super Micro Computer, Inc. FAQs
What is this shareholder class action about?
This shareholder lawsuit concerns how investors in SMCI Canadian Depositary Receipts (“CDRs”) traded on the CBOE Canada and Nasdaq Canada electronic markets can recover losses from the drop in price of SMCI CDRs purchased between April 17, 2024 and March 20, 2026. On March 20, 2026, the price of SMCI’s CDRs dropped from C$10.04 to C$6.72, or 33%.
How do I know if I'm eligible to participate in this shareholder class action?
A shareholder can participate if he/she purchased SMCI CDRs, which largely traded on the CBOE Canada. We are aware of submarkets for trading of SMCI CDRs on the Nasdaq Canada and smaller European electronic trading markets.
Will shareholders have out of pocket expenses if they participate in this shareholder class action?
No. Shareholders will not be asked to finance the shareholder class action. Berger Montague (Canada) PC has meticulously conducted its due diligence on the topic of the merits and jurisdictional issues; our experienced lawyers are fully committed to self-finance through a successful resolution. If there is a resolution, Berger Montague (Canada) PC will ask the court to be reimbursed its expenses and paid a legal fee from the settlement.
How does a corporation finance the damages to that may be paid to shareholders?
Most often, corporations finance only their annual D&O Insurance premium and a nominal upfront fee. For example, an annual D&O Insurance policy that provides up to $20 million may cost the corporation a $500,000 annual premium. If there is a claim against the D&O Insurance policy, the corporation may be required to pay $150,000 as an immediate contribution fee. In our experience, this type of shareholder class action would often settle for D&O Insurance limits minus the costs of the litigation; occasionally, individual directors and officers may also contribute more.
Why should I register my interest?
Shareholders should register their interest because they will receive updates of each material advancement in this shareholder class action. Importantly, if there is a resolution and monies are returned to shareholders, register shareholders will receive a direct notification opposed to having to find information on the internet at a future date. To confirm, it does not cost any money to register your interest in this shareholder class action.
How much will each shareholder recover from this shareholder class action?
The amount of recovery is administered on a per-security basis in the event of settlement or resolution on the merits at trial. There will be a net settlement amount to be distributed to investors, e.g., typically on a pro rata basis. The recovery amount per security is reduced due to an increased number of investors submitting claims during the claims administration process. In our experience, there are always per-security recovery limits. For example, if the price of a security drops $1.00 as a direct result of a public correction, the maximum recovery would be $1.00 minus the cost of expenses and legal fees (e.g., $0.5 per security for the litigation expenses plus $0.30 per security for legal fees), with the maximum recovery being $0.65 per security. This $0.65 could be further reduced if the number of qualified shares exceeds the net settlement amount. There are alternatives to the shareholder class action that could result in a greater per-security pro rata share, such as individual personal litigation.
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