NEW YORK, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Super Micro Computer, Inc. (“Super Micro” or the “Company”) (NASDAQ: SMCI) on behalf of Super Micro stockholders. Our investigation concerns whether Super Micro has violated the federal securities laws and/or engaged in other unlawful business practices.
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On August 27, 2024, Hindenburg Research issued a report regarding Super Micro, highlighting a number of concerns regarding the company's accounting practices and corporate governance. Allegations include improper revenue recognition and the rehiring of executives previously involved in accounting scandals.
According to the short report, “Less than three months after settling with the SEC for $17.5 million, Super Micro began rehiring top executives who were directly implicated in the accounting scandal, based on litigation records and interviews with former employees.” Hindenburg Research also highlighted issues related to Super Micro’s dealings with related parties. The report states that Super Micro’s CEO, Charles Liang, has brothers who control suppliers Ablecom and Compuware, which have received $983 million over three years. These relationships, described as circular, involve transactions that are not fully disclosed and pose risks to revenue recognition and reported margins, according to Hindenburg.
Super Micro’s integrity was further questioned regarding its transactions with sanctioned countries. Despite a guilty plea for exporting banned components to Iran in 2006 and assurances of compliance with U.S. export bans to Russia following the Ukraine invasion, the report suggests that exports to Russia have increased, potentially violating sanctions.
Following this news, the company’s stock price dropped by 4.5% in mid-day trading on August 27, 2024.
If you purchased or otherwise acquired Super Micro shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
