Super Micro, Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
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Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
On August 27, 2024, Hindenburg Research released a report that raised serious concerns about Super Micro’s accounting practices and corporate governance. The report alleges issues such as improper revenue recognition and the rehiring of executives previously involved in accounting scandals.
The report notes, “Less than three months after settling with the SEC for $17.5 million, Super Micro began rehiring top executives implicated in the accounting scandal, according to litigation records and interviews with former employees.” Hindenburg Research also pointed out problems with Super Micro’s transactions involving related parties. Specifically, it highlighted that CEO Charles Liang’s brothers control suppliers Ablecom and Compuware, which have received $983 million over the past three years. These transactions, described as circular, involve undisclosed dealings that could affect revenue recognition and reported margins.
The integrity of Super Micro was further questioned regarding its trade with sanctioned countries. Despite a guilty plea for exporting prohibited components to Iran in 2006 and promises of compliance with U.S. export bans following the invasion of Ukraine, the report suggests that exports to Russia have increased, potentially breaching sanctions.
In response to the report, Super Micro’s stock price fell by 4.5% in midday trading on August 27, 2024.
