Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Super Micro Computer, Inc. (SMCI) and is reminding investors of the October 29, 2024 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the company. The lawsuit alleges that Super Micro Computer and its executives violated federal securities laws by making false or misleading statements and failing to disclose material adverse facts concerning the company’s financial condition.
The complaint specifically alleges that Super Micro Computer engaged in consistent overreporting of sales and underreporting of expenses, re-hired executives who had previously departed due to an accounting scandal, had a closer relationship with related parties than disclosed, and had more related parties than previously acknowledged. Additionally, the lawsuit claims the company continued to export products to areas restricted by the United States government despite the Russia-Ukraine war, potentially risking government sanctions.
On August 27, 2024, Hindenburg Research released a short report detailing several allegations against Super Micro Computer. These allegations included glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and control failures, and customer issues. Following the release of the report, investors and analysts reacted immediately, causing the price of SMCI’s common stock to decline dramatically.
From a closing market price of $562.51 per share on August 26, 2024, SMCI’s stock price fell to $443.49 per share on August 28, 2024, representing a decline of approximately 21.16% within a two-day span.
Faruqi & Faruqi encourages investors who suffered losses exceeding $100,000 in Super Micro Computer between February 2, 2021, and August 28, 2024, to contact them directly to discuss their legal options. The firm is also encouraging anyone with information regarding Super Micro Computer’s conduct, including whistleblowers, former employees, shareholders, and others, to reach out.
For more information about the Super Micro Computer class action, visit www.faruqilaw.com/SMCI or contact Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You can also follow Faruqi & Faruqi for updates on LinkedIn, X, or Facebook.
