Super Micro Computer Stock Falls On Report Of DOJ Probe: What To Know
Super Micro Computer, Inc. (NASDAQ:SMCI) shares are falling Thursday following a report indicating the company is being probed by the Department of Justice following an August short report from Hindenburg Research.
The Details: According to a Wall Street Journal report, the company is being probed by U.S. Department of Justice following Hindenburg‘s report, published on Aug. 27, 2024. The short report included allegations made by former employee, Bob Luong, who also filed a whistleblower lawsuit in April against Super Micro and its CEO Charles Liang.
The DOJ probe is in the early-stages, and a prosecutor from the U.S. attorney's office in San Francisco has contacted people connected to a Luong’s accusations of accounting violations, according to people familiar with the situation.
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Luong claimed in his lawsuit that Super Micro had improperly recognized revenue from 2020 to 2022 and, in some cases, had booked revenue on sales that had not been completed. Luong also alleged the company re-hired employees who had been fired due to involvement with past accounting violations. Those violations resulted in Super Micro settling with the SEC in 2020 for $17.5 million, without admitting or denying the accusations.
SMCI shares are falling sharply following the report, and the stock has been halted multiple times on the way down, according to data from Benzinga Pro.
SMCI Price Action: According to Benzinga Pro, Super Micro Computer shares are down 15.6% at $386.61 at the time of publication Thursday.
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