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Super Micro Computer (SMCI) Tanks After Delaying Annual Report One Day After Hindenburg Report - Hagens Berman
Globe Newswire 30-Aug-2024 1:45 PM
SAN FRANCISCO, Aug. 30, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Super Micro Computer, Inc. (NASDAQ:SMCI) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys.
Investigation Into Super Micro Computer, Inc. (SMCI):
The investigation focuses on the propriety of Super Micro Computer's financial reporting and whether its financial statements were prepared in accordance with applicable accounting rules.
The price of Super Micro Computer shares tanked as much as 27% on August 28, 2024 after the company announced that it would not timely file its annual report for the fiscal year ended June 30, 2024. The company blamed the delay on the need to assess "the design and operating effectiveness of its internal controls over financial reporting[.]"
The day before, on August 27, 2024, the price of Super Micro Computer shares significantly fell after activist short seller Hindenburg Research published "Super Micro: Fresh Evidence Of Accounting Manipulation, Sibling Self-Dealing And Sanctions Evasion At This AI High Flyer."
After interviewing former senior employees, industry experts, and a whistleblower lawsuit brought by Super Micro's former head of Global Services, Hindenburg concluded "[a]ll told, we believe Super Micro is a serial recidivist[]" and it "faces significant accounting, governance and compliance issues and offers an inferior product and service now being eroded away by more credible competition."
Citing the whistleblower lawsuit, Hindenburg noted allegations against Super Micro of improper revenue recognition, recognizing incomplete sales, and circumvention of internal accounting controls. Hindenburg also wrote "pressure to meet quotas pushed salespeople to stuff the channel with distributors using ‘partial shipments' or by shipping defective products around quarter-end, per our interviews with former employees and customers."
"We are looking into whether Super Micro may have misled investors about its revenue recognition practices," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Super Micro Computer and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Super Micro Computer investigation, read more »
Whistleblowers: Persons with non-public information regarding Super Micro Computer should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SMCI@hbsslaw.com.
About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
