LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz is investigating potential claims against the board of directors of Super Micro Computer, Inc. (“Super Micro” or the “Company”) (NASDAQ: SMCI) concerning whether the board breached its fiduciary duties to shareholders.
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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.”
Following this news, Super Micro has delayed the filing of its fiscal 2024 annual report and formed a committee to review certain of the Company’s internal controls and other matters. Moreover, on October 24, 2024, its independent auditor Ernst & Young LLP resigned because it was “unwilling to be associated with the financial statements prepared by management.” On December 2, 2024, the Company’s special committee announced that it would commence a search for a new Chief Financial Officer.
Our investigation concerns whether the Company’s board of directors breached its fiduciary duties to shareholders and/or grossly mismanaged the Company in connection with the above alleged misconduct.
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If you still hold Super Micro shares purchased before February 2023, and wish to discuss this matter with us, or have any questions concerning your rights and interests with regards to this matter, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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