Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Super Micro Computer, Inc. (SMCI)

Globe Newswire 3-Sep-2024 3:34 PM

NEW YORK, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased or otherwise acquired Super Micro Computer, Inc. ("Super Micro" or the "Company") (NASDAQ:SMCI) securities between February 2, 2021 and August 26, 2024, inclusive (the "Class Period"). The lawsuit seeks to recover damages for the Company's investors under the federal securities laws.

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) Super Micro was subject to consistent overreporting of sales and underreporting of expenses; (ii) Super Micro had re-hired multiple executives who departed in the wake of Super Micro's prior accounting scandal; (iii) Super Micro had a closer relationship to its related parties than disclosed; and (iv) Super Micro had not ceased exporting products to areas restricted by the United States government as a result of the Russia-Ukraine war, risking government sanction.

The Complaint further alleges that on August 27, 2024, Hindenburg Research unveiled a research report entitled "Super Micro: Fresh Evidence of Accounting Manipulation, Sibling Self-Dealing And Sanctions Evasion At This AI High Flyer." Then, on August 28, 2024, Super Micro announced it would "Delay Form 10-K Filing for Fiscal Year 2024," stating that "[a]dditional time is needed for [Super Micro's] management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024." On this news, the price of Super Micro stock fell more than 21% over two trading sessions.

Investors who purchased or otherwise acquired shares of Super Micro should contact the Firm prior to the October 29, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.