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Johnson Fistel Launches Investigation into Super Micro Following Short Report by Hindenburg Research
Globe Newswire 27-Aug-2024 11:37 AM
SAN DIEGO, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP is investigating whether Super Micro, Inc. (NASDAQ:SMCI) or any of its executive officers or others violated securities laws by misrepresenting or failing to timely disclose material, adverse information to investors. The investigation focuses on investors' losses and whether they may be recovered under federal securities laws.
What if I purchased Super Micro securities? If you purchased securities and suffered losses on your investment, join our investigation now:
What is Johnson Fistel investigating? On August 27, 2024, Hindenburg Research issued a report regarding Super Micro, highlighting a number of concerns regarding the company's accounting practices and corporate governance. Allegations include improper revenue recognition and the rehiring of executives previously involved in accounting scandals.
According to the short report, "Less than three months after settling with the SEC for $17.5 million, Super Micro began rehiring top executives who were directly implicated in the accounting scandal, based on litigation records and interviews with former employees." Hindenburg Research also highlighted issues related to Super Micro's dealings with related parties. The report states that Super Micro's CEO, Charles Liang, has brothers who control suppliers Ablecom and Compuware, which have received $983 million over three years. These relationships, described as circular, involve transactions that are not fully disclosed and pose risks to revenue recognition and reported margins, according to Hindenburg.
Super Micro's integrity was further questioned regarding its transactions with sanctioned countries. Despite a guilty plea for exporting banned components to Iran in 2006 and assurances of compliance with U.S. export bans to Russia following the Ukraine invasion, the report suggests that exports to Russia have increased, potentially violating sanctions.
Following this news, the company's stock price dropped by 4.5% in mid-day trading on August 27, 2024.
What if I have relevant nonpublic information? Individuals with nonpublic information regarding the company should consider whether to assist our investigation or take advantage of the SEC Whistleblower program. Under the SEC program, whistleblowers who provide original information may, under certain circumstances, receive rewards totaling up to thirty percent of any successful recovery made by the SEC. For more information, contact Jim Baker at (619) 814-4471 or jimb@johnsonfistel.com.
About Johnson Fistel, LLP: Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com.
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Johnson Fistel, LLP has paid for the dissemination of this promotional communication, and Frank J. Johnson is the attorney responsible for its content.
Contact: Johnson Fistel, LLP 501 W. Broadway, Suite 800, San Diego, CA 92101 James Baker, Investor Relations or Frank J. Johnson, Esq., (619) 814-4471 jimb@johnsonfistel.com or fjohnson@johnsonfistel.com
