Super Micro Computer, Inc.
Case Overview
34 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 10/29/2024 |
Status: | Status: Investigating |
Company Name: | Company Name: Super Micro Computer, Inc. |
Court: | Court: Northern District of California |
Case Number: | Case Number: 5:24cv06147 |
Class Period: | Class Period: 02/02/2021 - 08/28/2024 |
Ticker: | Ticker: SMCI |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Super Micro Computer, Inc. (“Super Micro Computer” or the “Company”) (NASDAQ: SMCI) securities during the period of February 2, 2021 to August 28, 2024, inclusive (“the Class Period”). Investors have until October 29, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On August 27, 2024, the investor research firm Hindenburg Research released a report that detailed alleged “accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues” at behalf of Super Micro Computer. On this news, the price of Super Micro shares declined by $14.87 per share, from $562.51 per share on August 26, 2024, to close at $547.64 on August 27, 2024.
On August 28, 2024, the day after Hindenburg Research published its report, Super Micro Computer disclosed that it would delay the filing of its annual report for its fiscal year that ended June 30, 2024 in order to “complete its assessment of the design and operating effectiveness of its internal controls over financial reporting”. On this news, the price of Super Micro shares declined by $104.15 per share, or approximately 18.3%, to close at $443.49 on August 28, 2024.
The lawsuit alleges that Super Micro Computer failed to disclose that the Company: (i) was subject to consistent overreporting of sales and underreporting of expenses; (ii) had re-hired multiple executives who departed in the wake of its prior accounting scandal; (iii) had a closer relationship to its related parties than disclosed; and (iv) continued to export products to areas restricted by the United States government as a result of the Russia-Ukraine war, risking government sanction.
On August 27, 2024, the investor research firm Hindenburg Research released a report that detailed alleged “accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues” at behalf of Super Micro Computer. On this news, the price of Super Micro shares declined by $14.87 per share, from $562.51 per share on August 26, 2024, to close at $547.64 on August 27, 2024.
On August 28, 2024, the day after Hindenburg Research published its report, Super Micro Computer disclosed that it would delay the filing of its annual report for its fiscal year that ended June 30, 2024 in order to “complete its assessment of the design and operating effectiveness of its internal controls over financial reporting”. On this news, the price of Super Micro shares declined by $104.15 per share, or approximately 18.3%, to close at $443.49 on August 28, 2024.
The lawsuit alleges that Super Micro Computer failed to disclose that the Company: (i) was subject to consistent overreporting of sales and underreporting of expenses; (ii) had re-hired multiple executives who departed in the wake of its prior accounting scandal; (iii) had a closer relationship to its related parties than disclosed; and (iv) continued to export products to areas restricted by the United States government as a result of the Russia-Ukraine war, risking government sanction.