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Super Micro Computer (SMCI) Faces Expanded Class Action - Hagens Berman
Globe Newswire 7-Oct-2024 9:21 PM
SAN FRANCISCO, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Super Micro Computer Inc. (NASDAQ:SMCI) is facing a broadened securities class action lawsuit, alleging that the company and certain of its top executives engaged in a fraudulent scheme that inflated the company's stock price.
Hagens Berman urges Super Micro Computer, Inc. (NASDAQ:SMCI) investors who suffered substantial losses to submit your losses now.
Expanded Class Period: Feb. 2, 2021 – September 25, 2024 Lead Plaintiff Deadline for All Class Actions: Oct. 29, 2024 Visit:www.hbsslaw.com/investor-fraud/smci Contact the Firm Now:SMCI@hbsslaw.com 844-916-0895
The New Super Micro Computer, Inc. (SMCI) Securities Class Action:
The new complaint, filed in the U.S. District Court for the Northern District of California, extends the alleged fraudulent period to include recent disclosures that purportedly revealed the defendants' misconduct and caused significant losses to investors.
The lawsuit, brought on behalf of investors who purchased Super Micro securities between February 2, 2021, and September 25, 2024, alleges violations of federal securities laws, including the Securities Exchange Act of 1934 and SEC Rule 10b-5. The complaint alleges that the defendants intentionally or recklessly misled investors by:
Materially misstating Super Micro's reported revenues, earnings, and other financial figures.
Failing to disclose that the company's internal controls over financial reporting were ineffective.
Concealing material information about related parties and related party transactions.
Claiming to be 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.
Hagens Berman, a leading shareholder rights firm, has launched an investigation. "The claims in the litigation raise significant concerns about Super Micro's financial reporting and internal controls," said Reed Kathrein, the firm's partner leading the probe. "We're determined to get to the bottom of these serious matters."
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 case and our 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.
