Super Micro Computer stock split on October 1 amid legal troubles

On October 1, 2024, Super Micro Computer, a server manufacturer based in the United States, initiated a 10-for-1 stock split, resulting in a lower trading price for its shares. This corporate action comes amid serious allegations of accounting irregularities and potential misconduct, which have significantly impacted the company's stock value. The U.S. Attorney's Office in San Francisco has reached out to individuals with knowledge of these issues, following a critical report by short-seller Hindenburg Research. The company is currently facing three separate class-action lawsuits that echo the claims made by Hindenburg, including accusations of rehiring executives linked to previous accounting scandals and continuing to export products to restricted regions. These legal challenges have contributed to a substantial decline in Super Micro's market capitalization, with billions of dollars lost since the allegations emerged. In response to the scrutiny, Super Micro announced a delay in filing its annual report on Form 10-K, citing the need for additional time to evaluate its internal controls. As of now, the company has not submitted this crucial filing, raising further concerns among investors and stakeholders. Prominent shareholder rights firm Hagens Berman is investigating the situation, emphasizing the seriousness of the allegations. The firm is committed to uncovering the truth behind the claims and has encouraged whistleblowers with non-public information to come forward, potentially benefiting from the SEC Whistleblower program.