Super Micro co-founder offloads shares as legal and financial issues mount
Super Micro co-founder and VP Sara Liang sells entire stock holdings
Super Micro Computer’s co-founder Sara Chiu-Chu Liu Liang sold her entire personal stake in the company days after Super Micro resolved its delinquent financial filings and regained Nasdaq compliance.
Key Takeaways
- Co-founder and senior VP Sara Chiu-Chu Liu Liang sold 46,293 shares worth $2.3 million, reducing her personal holdings in Super Micro to zero.
- Super Micro filed delayed financial reports after issues with its former auditor EY, which accused the company’s management of integrity concerns.
- Despite meeting financial reporting requirements, Super Micro remains under investigation by the SEC and the Department of Justice and faces at least five lawsuits over delayed financial disclosures.
Major Stock Sell-Off by Company Insiders
Sara Chiu-Chu Liu Liang, co-founder and senior VP of Super Micro Computer and wife of CEO Charles Liang, sold her entire personal holding of 46,293 shares for $2.3 million, bringing her personal ownership in the company to zero. Senior VP of operations George Kao also offloaded 71,720 shares worth $3.6 million, reports Fortune.
Super Micro Computer, Inc. (SMCI) share price dynamics (2022 - Feb 2025) Source: TradingView
Despite these sales, both Liang and Kao received thousands of restricted stock units, a form of equity compensation that will vest over the next four years. CEO Charles Liang remains a major shareholder through his personal holdings and those indirectly held through his wife, totaling over 67 million shares.
Nasdaq Compliance Restored After Delinquent Filings
Super Micro had faced potential delisting from Nasdaq due to delayed financial reports tied to its fallout with former auditor Ernst & Young (EY). EY resigned, citing concerns about management’s integrity, which prompted the company to delay its annual and quarterly reports for periods ending in late 2024.
The company finally submitted these overdue filings, attributing the delay to EY’s concerns and departure. Following this, Super Micro’s stock rebounded as it avoided delisting and turned its attention toward ambitious growth targets, including a $40 billion revenue goal for 2025.
Ongoing Legal and Regulatory Scrutiny
Despite clearing the Nasdaq compliance hurdle, Super Micro continues to face significant legal and regulatory challenges. The company is under investigation by the Securities and Exchange Commission (SEC) and the Department of Justice over accounting practices.
Additionally, Super Micro has been hit with at least five lawsuits tied to the delay in its financial filings and the broader fallout from the accusations leveled by its former auditor. CEO Charles Liang emphasized the company’s commitment to growth and innovation, stating that with financial reporting back on track, Super Micro can now focus on executing its long-term strategy.
Earlier, a consortium of banks led by Morgan Stanley is preparing to sell $3 billion in senior debt tied to Elon Musk’s acquisition of X, the social media platform formerly known as Twitter.
