PHILADELPHIA, PA / ACCESSWIRE / December 5, 2024 / Kaskela Law LLC announces that it is investigating Super Micro Computer, Inc. (NASDAQ:SMCI) ("Super Micro") on behalf of the company's long-term investors.
Click here for additional information: https://kaskelalaw.com/case/super-micro-computer/
Recently a securities fraud complaint was filed against Super Micro on behalf of investors who purchased shares of the company's stock between February 2, 2021 and August 26, 2024 (the "Class Period"). According to the complaint, during the Class Period Super Micro and certain of the company's senior executive officers made a series of false and/or misleading statements to investors regarding the Company's continued record demand, surging revenue growth, and increased product shipments.
As further detailed in the complaint, on August 27, 2024, investment research firm Hindenburg Research ("Hindenburg") issued a report entitled Super Micro: Fresh Evidence of Accounting Manipulation, Sibling Self-Dealing and Sanctions Evasion at this AI High Flyer ("Report"). In its Report, Hindenburg reported it had uncovered "glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." As detailed in the Report and corroborated by a recent whistleblower lawsuit, these accounting manipulations included the improper recognition of revenue, the recognition of incomplete sales, channel stuffing, and the circumvention of internal accounting controls. Following this news, shares of Super Micro's common stock fell $10.40 per share, or 19% in value, to close on August 28, 2024 at $44.35 per share, on unusually heavy trading volume.
Subsequently, on October 30, 2024, Super Micro disclosed that its accounting firm, Ernst & Young LLP, had resigned, stating that it was "resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management's and the Audit Committee's representations and to be unwilling to be associated with the financial statements prepared by management, and after concluding we can no longer provide the Audit Services in accordance with applicable law or professional obligations." This additional development caused the company's shares to decline an additional $16.05 per share, or 32.6%, to close on October 30, 2024 at $33.07 per share, again on heavy trading volume.
Super Micro shareholders who purchased or acquired SNOW shares prior to January 1, 2024 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 - 0750 for additional information about this investigation and their legal rights and options. Alternatively, investors may submit their information to the firm by clicking on the following link (or by copying and pasting the link into your browser):
https://kaskelalaw.com/case/super-micro-computer/
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
(skaskela@kaskelalaw.com)
Adrienne Bell, Esq.
(abell@kaskelalaw.com)
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(484) 229 - 0750
www.kaskelalaw.com
This notice may constitute attorney advertising in certain jurisdictions.
SOURCE: Kaskela Law LLC
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