Labaton Keller Sucharow LLP Announces Expanded Securities Class Action Lawsuit Filed Against Super Micro Computer, Inc. and Certain Executives

Business Wire 4-Oct-2024 7:14 PM

Labaton Keller Sucharow LLP ("Labaton") announces that, on October 4, 2024, it filed a securities class action lawsuit (the "Complaint") on behalf of its client Norfolk County Retirement System ("Norfolk County") against Super Micro Computer, Inc. ("Super Micro" or the "Company") (NASDAQ:SMCI) and certain Super Micro officers (collectively, "Defendants"). The action, which is captioned Norfolk County Retirement System v. Super Micro Computer, Inc., No. 24-cv-06980 (N.D. Cal Oct. 4, 2024) asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired Super Micro securities between February 2, 2021, and September 25, 2024, inclusive (the "Class Period").

This Complaint is related to the following three actions that were previously filed against Super Micro captioned Averza v. Super Micro Computer, Inc., No. 24-cv-06147 (N.D. Cal. Aug. 30, 2024); Menditto v. Super Micro Computer, Inc., No. 24-cv-06149 (N.D. Cal. Aug. 30, 2024); and Spantz v. Super Micro Computer, Inc., No. 24-cv-06193 (N.D. Cal. Aug. 30, 2024) (the "Initial Actions"). The longest class period alleged among the Initial Actions is February 2, 2021, to August 26, 2024, inclusive. The newly filed Complaint expands upon the Initial Actions by extending the Class Period to run from February 2, 2021, to September 25, 2024, inclusive.

Pursuant to the notices published on August 30, 2024, in connection with the filing of the Initial Actions, as required by the Private Securities Litigation Reform Act of 1995, investors wishing to serve as Lead Plaintiff in these related securities actions pending against Defendants are required to file a motion for appointment as Lead Plaintiff by no later than October 29, 2024.

Headquartered in San Jose, California, Super Micro is a manufacturer of server and storage solutions, providing hardware to technology companies for use in servers supporting website, data storage, and artificial applications.

The Complaint expands on the fraud claims in the Initial Actions. Specifically, the Complaint alleges that Defendants intentionally or recklessly misled investors during the Class Period by (a) materially misstating Super Micro's reported revenues, earnings, and other financial figures in violation of U.S. Generally Accepted Accounting Principles; (b) failing to disclose that Super Micro's internal controls over financial reporting were ineffective; (c) concealing material information about related parties and related party transactions; and (d) claiming to have been in compliance with trade control regulations restricting exports to Russia.

Defendants' fraud began to emerge on August 27, 2024, when investment firm Hindenburg Research published a report that provided credible evidence of "glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues" at Super Micro. On this news, Super Micro stock dropped 2.64 percent, to close at $547.64 per share on August 27, 2024.

The next day, on August 28, 2024, Super Micro announced that it would delay the filing of its annual report on Form 10-K to assess the "design and operating effectiveness of its internal controls over financial reporting." On this news, Super Micro stock dropped 19.02 percent, to close at $443.49 per share on August 28, 2024.

Finally, on September 26, 2024, The Wall Street Journal reported that the U.S. Department of Justice ("DOJ") had initiated an investigation into Super Micro. The investigation reportedly focused on allegations made by a whistleblower and former employee, who accused the company of accounting violations. On news of the DOJ investigation, Super Micro stock dropped 12.17 percent, to close at $402.40 per share on September 26, 2024.

If you purchased or acquired Super Micro securities during the Class Period and were damaged thereby, you are a member of the "Class" and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed no later than October 29, 2024. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.

If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact William Schervish, Esq., of Labaton at (212) 907-0886 or via email at wschervish@labaton.com. You can view a copy of the Complaint online here.

Plaintiff Norfolk County is represented by Labaton Keller Sucharow, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $3.5 trillion. Labaton Keller Sucharow's litigation reputation is built on its more than 60 years of securities litigation experience, more than 90 full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton Keller Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, Delaware, London, and Washington, D.C. More information about Labaton Keller Sucharow is available at labaton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241004851446/en/