SMCI Investors Urged to Act Before Lead Plaintiff Deadline

On October 4, 2024, Robbins LLP announced a class action lawsuit against Super Micro Computer, Inc. (SMCI) in the United States, following allegations that the company misled investors about its financial health. The lawsuit claims that during the class period from August 10, 2021, to August 26, 2024, SMCI engaged in practices such as overreporting sales and underreporting expenses, which significantly distorted its financial statements. Furthermore, the company allegedly re-hired executives linked to a previous accounting scandal and failed to disclose its relationships with related parties adequately. The situation escalated when Hindenburg Research released a report on August 27, 2024, detailing various concerns about SMCI's accounting practices, including undisclosed related party transactions and potential sanctions due to exports to restricted areas amid the Russia-Ukraine conflict. This report led to a dramatic decline in SMCI's stock price, falling from $562.51 to $443.49 within two days, representing a loss of approximately 21.16%. In light of these developments, Robbins LLP is urging affected shareholders to consider participating in the class action lawsuit. The deadline for submitting applications to serve as lead plaintiff is October 29, 2024. A lead plaintiff represents the interests of all class members in the litigation process. Robbins LLP emphasizes that shareholders do not need to actively participate in the case to be eligible for potential recovery, and all legal representation will be on a contingency fee basis, meaning no upfront costs for the shareholders involved.