Shareholders Contest Movano Merger as Export Scandal and Legal Investigations Unfold

Movano Inc. (NASDAQ: MOVE), a medical wearable technology company listed on the stock exchange, is currently under increasing legal and investor scrutiny after announcing a planned merger with Corvex, an artificial intelligence cloud provider, while federal officials allege a separate plot to send restricted

chips to China. Under the proposed agreement, shareholders would retain just 3.8% ownership in the merged business, prompting investigations into whether the board failed in its fiduciary responsibilities by not obtaining adequate value for investors, .

The merger has become further complicated by legal issues involving Corvex’s chief technology officer, Raymond, who is one of four people named in a federal indictment for allegedly attempting to illegally ship hundreds of Nvidia GPUs to China via Thailand.

attempts to export 50 H200 GPUs and 10 HP supercomputers equipped with H100 chips, with Raymond’s Alabama-based firm, Bitworks, identified as a supplier . A spokesperson for Corvex sought to distance the company from the allegations, clarifying that Raymond was a former consultant whose job offer had been withdrawn .

The legal developments have had a noticeable impact on the market.

in pre-market trading on November 17, as reported by Benzinga, as lawsuits from shareholders intensified. Both Halper Sadeh LLC and Brodsky & Smith are calling on investors to scrutinize the fairness of the merger, with Brodsky & Smith pointing out that Corvex investors would hold 96.2% of the merged company after the deal . Detractors claim the arrangement heavily benefits Corvex’s investors, raising concerns about the thoroughness of Movano’s board’s review process.

The case involving Nvidia chip exports further complicates the situation.

that Raymond and his associates used a shell company, Janford Realtor LLC, to carry out the smuggling, with money routed through accounts linked to China and ending up at Raymond’s Alabama business . The operation allegedly resulted in over $3.4 million in illegal wire transfers, leading to seven charges of money laundering against Raymond . Although Corvex insists it was not involved, the connection has damaged its reputation, leaving Movano shareholders to deal with both business and regulatory uncertainties.

With investigations ongoing, the fate of the merger is still unclear.

that "investors have a right to full disclosure regarding the risks associated with Corvex’s management and business practices," while Daniel Sadeh of Halper Sadeh discussed possible solutions, such as a higher merger price or more detailed disclosures . For now, Movano’s investors are caught in the midst of corporate maneuvering, legal disputes, and international tensions over the export of AI technology.