PHILADELPHIA, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Berger Montague PC advises investors that a securities fraud class action lawsuit has been filed against Super Micro Computer, Inc. (“Super Micro” or the “Company”) (NASDAQ: SMCI) on behalf of purchasers of Super Micro securities between February 2, 2021 through August 28, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired Super Micro securities during the Class Period may, no later than October 29, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Peter Hamner at phamner@bm.net or (215) 875-3048, or CLICK HERE.
Super Micro, headquartered in San Jose, CA, 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.
According to the complaint, throughout the Class Period, Super Micro and senior executives reported strong demand, surging revenue growth, and increased product shipments. The Company also represented that it adhered to U.S. and other applicable trade control regulations, including the fact that it had made no sales in the Russian Federation during 2023 and 2024, and no sales to the Russian Federal Security Service (“FSB”).
On August 27, 2024, the truth began to emerge when Hindenburg Research issued a research report titled Super Micro: Fresh Evidence of Accounting Manipulation, Sibling Self-Dealing and Sanctions Evasion at this AI High Flyer. In its Report, Hindenburg claimed to have 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. Hindenburg also reported that Super Micro had evaded U.S. export controls and had shipped approximately $210 million of products to Russia between February 2022 and June 2024.
As a result of these disclosures, the price of Super Micro common stock declined by $14.87 per share, or 2.64%, to close at $547.64 per share on August 27, 2024.
Then, on August 28, 2024, Super Micro announced that it would not be timely filing its Form 10-K annual report, as it was assessing the “design and operating effectiveness of its internal controls over financial reporting.” As a result of these disclosures, the price of Super Micro common stock fell $104.15 per share, or 19.02%, to close at $443.49 per share on August 28, 2024.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contact:
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Peter Hamner
Berger Montague PC
(215) 875-3048
phamner@bm.net
