Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Super Micro Computer, Inc. (“Super Micro” or the “Company”) (NASDAQ: SMCI) securities between August 10, 2021 to August 26, 2024, inclusive (the “Class Period”). Super Micro investors have until October 29, 2024 to file a lead plaintiff motion.
Investors suffering losses on their Super Micro investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On August 27, 2024, Hindenburg Research published a report alleging, among other things, that an investigation into Super Micro “found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues,” including “improper revenue recognition,” “recognizing incomplete sales,” and “circumvention of internal accounting controls.” Additionally, the report states that Super Micro’s CEO’s younger brother operates two Taiwan-based companies which “appear to be undisclosed suppliers of Super Micro.”
On this news, Super Micro’s stock price fell $119.02, or 21.2%, over two consecutive trading days to close at $443.49 per share on August 28, 2024, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company was subject to consistent overreporting of sales and underreporting of expenses; (2) it had re-hired multiple executives who departed in the wake of the Company’s prior accounting scandal; (3) the Company has a closer relationship to its related parties than disclosed; (4) the Company had more related parties than it had disclosed; (5) the Company had not ceased exporting products to areas restricted by the United States government as a result of the Russia-Ukraine war, risking government sanction; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Super Micro securities, have information or 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240903829714/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
