SAN DIEGO, Sept. 26, 2024 (GLOBE NEWSWIRE) -- On August 30, 2024, DiCello Levitt LLP (“DiCello Levitt”) filed a class action lawsuit in the U.S. District Court for the Northern District of California alleging violations of the federal securities laws by Super Micro Computer, Inc. (NASDAQ: SMCI) (“Super Micro” or the “Company”) and certain of the Company’s senior executives (collectively, “Defendants”). The action is brought on behalf of all persons or entities that purchased or otherwise acquired Super Micro securities between February 2, 2021 and August 26, 2024, inclusive (the “Class Period”). The docket number for the case is 5:24-cv-06193.
Now, media reports confirm that the U.S. Department of Justice is investigating Super Micro, sending the Company’s shares down more than 15%.
If you suffered a significant loss, would like a copy of the complaint, or wish to discuss this action you can contact DiCello Levitt attorneys Brian O’Mara and Hani Farah by calling (888) 287-9005 or emailing investors@dicellolevitt.com.
Super Micro investors have until October 29, 2024 to petition the Court for appointment as lead plaintiff. Your ability to share in any recovery does not require that you serve as a lead plaintiff. No class has been certified. Until a case is filed and a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Investigation Details:
Super Micro is a $35 billion, high-powered server and storage solutions manufacturer that sells its hardware to technology companies for use as servers for websites, data storage, and artificial intelligence applications. Servers and storage systems accounted for 92% of Super Micro’s net sales in 2023, with 61% of its latest quarterly revenue coming from sales in the United States.
On August 27, 2024, Hindenburg Research published a critical research report titled “Super Micro: Fresh Evidence of Accounting Manipulation, Sibling Self-Dealing and Sanctions Evasion at This AI High Flyer,” alleging, among other things, that it “found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.” According to the report, Hindenburg Research claims that the alleged fraud and “improper revenue recognition,” “sanctions evasion,” and “competition and quality concerns” are confirmed as a result of a three-month investigation, through interviews with former senior employees and industry experts, review of litigation records, and international corporate and customs records.
In response to the Hindenburg Research report and the Company’s decision to delay the filing of its Form 10-K to investigate Hindenburg’s allegations, shares of Super Micro plunged to their lowest in almost six years to trade as low as $395.18 per share on August 28, 2024, falling more than 29% (or more than $167) from its close on August 26, 2024, erasing more than $9.7 billion in market value.
On September 25, 2024, the Wall Street Journal reported that the Justice Department is investigating the server maker for alleged accounting irregularities. As a result, Super Micro stock fell more than 15%.
About DiCello Levitt:
At DiCello Levitt, we are dedicated to achieving justice for our clients through class action, business-to-business, public client, whistleblower, personal injury, civil and human rights, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases – whether by trial, settlement, or otherwise – for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations – and our capital – on the line for our clients.
DiCello Levitt has achieved top recognition as Plaintiffs Firm of the Year and Trial Innovation Firm of the Year by the National Law Journal, in addition to its top-tier Chambers and Benchmark ratings. The New York Law Journal also recently recognized DiCello Levitt as a Distinguished Leader in trial innovation. For more information about the Firm, including recent trial victories and case resolutions, please visit www.dicellolevitt.com.
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