Archived Investigations
Super Micro Computer, Inc. (NasdaqGS: SMCI)
SMCI and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On August 27, 2024, Hindenburg Research released a report entitled “Super Micro: Fresh Evidence of Accounting Manipulation, Sibling Self-Dealing and Sanctions Evasion at this AI High Flyer” that detailed its “3-month investigation” which uncovered “glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and expert control failures, and customer issues,” and that the Company continued to engage in channel-stuffing despite being charged by the SEC for doing so. On this news, the price of SMCI’s shares fell from a closing price of $562.51 per share on August 26, 2024 to $443.49 per share on August 28, 2024. Then, on September 26, 2024, The Wall Street Journal reported that the U.S. Department of Justice had initiated an investigation into Super Micro reportedly focusing on allegations made by a whistleblower and former employee, who accused the company of accounting violations. On this news, the price of SMCI’s shares fell 12.17%, to close at $402.40 per share on September 26, 2024.
The first-filed case is Averza v. Super Micro Computer, Inc., 24-cv-06147. Four subsequent cases were filed, Menditto v. Super Micro Computer, Inc., 24-cv-06149, Spatz v. Super Micro Computer, Inc., 24-cv-06193, Norfolk County Retirement System v. Super Micro Computer, Inc., 24-cv-6980, and Covey Financial Inc. v. Super Micro Computer, Inc., 24-cv-07274.