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Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Super Micro Computer, Inc. (SMCI)
Globe Newswire 11-Sep-2024 7:40 PM
LOS ANGELES, Sept. 11, 2024 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming October 29, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Super Micro Computer, Inc. ("Super Micro" or the "Company") (NASDAQ:SMCI) securities between February 2, 2021 to August 28, 2024, inclusive (the "Class Period").
If you suffered a loss on your Super Micro investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Super-Micro-Computer-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On August 27, 2024, Hindenburg Research published a report alleging, among other things, that an investigation into Super Micro "found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues," including "improper revenue recognition," "recognizing incomplete sales," and "circumvention of internal accounting controls." Additionally, the report states that Super Micro's CEO's younger brother operates two Taiwan-based companies which "appear to be undisclosed suppliers of Super Micro."
On this news, Super Micro's stock price fell $119.02, or 21.2%, over two consecutive trading days to close at $443.49 per share on August 28, 2024, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company was subject to consistent overreporting of sales and underreporting of expenses; (2) it had re-hired multiple executives who departed in the wake of the Company's prior accounting scandal; (3) the Company has a closer relationship to its related parties than disclosed; (4) the Company had more related parties than it had disclosed; (5) the Company had not ceased exporting products to areas restricted by the United States government as a result of the Russia-Ukraine war, risking government sanction; and (6) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Super Micro securities during the Class Period, you may move the Court no later than October 29, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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