Super Micro Computer faces class action lawsuit in September 2024
- A class action lawsuit was filed against Super Micro Computer, Inc. on September 6, 2024, for misleading investors about its financial status.
- The allegations include overreporting sales, underreporting expenses, and undisclosed relationships with related parties.
- Shareholders can apply to be lead plaintiffs by October 29, 2024, with no fees unless a recovery is achieved.
On September 6, 2024, Robbins LLP announced that a class action lawsuit had been filed against Super Micro Computer, Inc. (SMCI) on behalf of shareholders who purchased the company's securities between August 10, 2021, and August 26, 2024. The lawsuit alleges that SMCI misled investors about its financial health, including overreporting sales and underreporting expenses. Additionally, it claims that the company re-hired executives involved in a previous accounting scandal and failed to disclose its relationships with related parties. The allegations further state that SMCI continued to export products to regions restricted by the U.S. government due to the ongoing Russia-Ukraine conflict, which could lead to government sanctions. A research report highlighted significant accounting issues, undisclosed related party transactions, and customer problems, raising concerns about the company's governance and transparency. Following the release of this information, SMCI's stock price plummeted from $562.51 per share on August 26, 2024, to $443.49 per share by August 28, 2024, marking a dramatic decline of approximately 21.16%. This sharp drop in stock value reflects the market's reaction to the allegations and the potential implications for the company's future. Shareholders interested in participating in the class action must submit their applications to serve as lead plaintiff by October 29, 2024. Robbins LLP emphasizes that representation is on a contingency fee basis, meaning shareholders will incur no fees or expenses unless they recover losses through the litigation.