Super Micro Computer Inc. Under Investigation by US Justice Department
Super Micro Computer Inc. is currently facing an investigation by the US Justice Department following a report from a short-seller that raised concerns about the company’s accounting practices. The Wall Street Journal reported that a prosecutor at the US attorney’s office in San Francisco has reached out to individuals who may have relevant information regarding the case.
Key Points:
- The prosecutor is seeking information related to a former employee who accused the company of accounting violations and filed a whistleblower lawsuit against the company and its CEO.
- Super Micro Computer’s shares fell by 17% to $382.29 in New York, the biggest decline in almost a month, after the news broke.
- Hindenburg Research previously raised concerns about the company’s accounting practices, citing red flags and undisclosed transactions.
Super Micro Computer and the Justice Department have not yet responded to requests for comment on the matter. The company’s shares had seen a 61% increase in value this year before the recent decline.
It is important to note that the investigation is ongoing, and further details may emerge as the case progresses. Stay tuned for updates on this developing story.
–With assistance from Chris Strohm and Ian King.
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