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Overview
Case Number: CV-24-00731863-00CP
Practice Area: Canada Securities Investor Protection
Case Status: Process of being re-filed in California
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
Super Micro Computer, Inc. (“SMCI”)
CUSIP: 86805G100
ISIN: CA86805E1051
UPDATES
As of March 3, 2026, Berger Montague (Canada) PC continues to invite investors that purchased SMCI’s Canadian Depositary Receipts (“CDRs”) to discuss their legal options to recover lost capital as a result of purchasing SMCI’s CDRs traded on the CBOE Canada and Nasdaq Canada prior to March 20, 2026. SMCI’s CDRs, sponsored by Canadian Imperial Bank of Commerce commencing trading on April 17, 2024.
On December 8, 2025, the Ontario Court received the parties’ submissions to discontinue the Ontario class proceeding with the idea that SMCI CDR investors would refile the Canadian claims in California. The Ontario Securities Commission has published multiple opinions on CanLii that report that CDRs are securities.
On June 10, 2025, SMCI served a motion record on the Canadian Investors arguing, in part, that (a) SMCI is not a responsible issuer in Ontario, Canada; and (b) “Ontario is not the appropriate forum for an action in respect of [the CDRs]. The appropriate forum is the United States…”
OVERVIEW
This shareholder class action alleges that SMCI published material fact news that its business operations and financials were being reported in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), and that the Company’s internal control over financial reporting as of June 30, 2023 was based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and negligently reported that its financial statements, MD&As, and news releases published during the Class Period were accurate when, in fact, they were not.
On August 27, 2024, a third-party report was released to the market highlighting SMCI’s accounting irregularities. Said report provided examples of undisclosed related party transactions and of exporting products to Russia in contravention of both U.S. export restrictions and statements made to the markets.
On October 30, 2024, SMCI released a statement that Ernst & Young had abruptly resigned as the company’s auditor and that Ernst & Young had refused to provide an audit opinion for SMCI’s F/2024 financial statements. When the truth came out, SMCI investors lost substantial amounts of money as the share price sharply declined.
On March 19, 2026, the U.S. federal government unsealed the indictment (criminal investigation and charges) against three of SMCI’s senior executives and, specifically, reported that the illegal conduct (i.e., sales and, by extension, improper booking of revenues).
If you have questions about this shareholder class action, please contact us at (647) 576-7840, or by email at Canadainfo@bergermontague.com.
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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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