SAN DIEGO, Aug. 30, 2024 (GLOBE NEWSWIRE) -- Today, 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 common stock between February 2, 2021, and August 26, 2024, inclusive (the “Class Period”). The docket number for the case is 5:24-cv-06193.
If you suffered a loss in Super Micro common stock, you have until October 29, 2024to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery does not require that you serve as a lead plaintiff.
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.
Case Allegations
Headquartered in San Jose, California, Super Micro is a server and storage solutions manufacturer that sells its hardware to technology companies for use as servers for websites, data storage, and artificial intelligence applications.
The complaint alleges that, throughout the Class Period, Defendants reported to investors and the market the Company’s continued record demand, surging revenue growth, and increased product shipments. The Company also represented that it adhered to U.S. and other applicable trade control regulations and confirmed that no sales of any products occurred in the Russian Federation during fiscal years 2023 and 2024 and that the Company and its subsidiaries did not sell products or provide services to the Russian Federal Security Service (“FSB”). As a result of Defendants’ representations and the Company’s reported financial and operational results, the price of Super Micro common stock surged above $1,255 per share.
On August 27, 2024, the truth began to emerge when investment research firm Hindenburg Research (“Hindenburg”) issued a research report titled Super Micro: Fresh Evidence of Accounting Manipulation, Sibling Self-Dealing and Sanctions Evasion at this AI High Flyer (“Report”). In its Report, Hindenburg stated it had uncovered “glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.” As detailed in the Report and corroborated by a recent whistleblower lawsuit, these accounting manipulations included the improper recognition of revenue, the recognition of incomplete sales, channel stuffing, and the circumvention of internal accounting controls.
The Report also stated that Hindenburg had uncovered evidence that Super Micro had evaded U.S. export controls and between February 24, 2022 and June 30, 2024, Super Micro’s exports of products to Russia spiked, having shipped approximately $210 million of Super Micro products to Russia during that period.
As a result of these disclosures on August 27, 2024, the price of Super Micro common stock declined by $14.87 per share, falling 2.64% to close at $547.64.
The next day, on August 28, 2024, Super Micro announced that it would not be timely filing its Form 10-K annual report as it is assessing the “design and operating effectiveness of its internal controls over financial reporting,” stating:
Super Micro . . . today announced that it expects that it will not timely file its Annual Report on Form 10-K for the fiscal year ended June 30, 2024 (the “Annual Report”) and expects to file a Notification of Late Filing on Form 12b-25 with respect to the Annual Report on August 30, 2024. SMCI is unable to file its Annual Report within the prescribed time period without unreasonable effort or expense. Additional time is needed for SMCI’s management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024. SMCI has not made updates to its results for the fiscal year and quarter ended June 30, 2024 that were announced in SMCI’s press release dated August 6, 2024.
As a result of these disclosures on August 28, 2024, the price of Super Micro common stock continued to decline, falling $104.15 per share, or 19.02%, to close at $443.49.
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.
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