Supermicro as well as certain of Top Executives Violate Securities Exchange Act of 1934

The law firm of Robbins Geller Rudman & Dowd LLP announces that the class action lawsuit – captioned Averza v. Super Micro Computer, Inc., No. 24-cv-06147 (N.D. Cal.) – charges Super Micro Computer as well as certain of its top executives with violations of the Securities Exchange Act of 1934. A subsequently filed complaint is captioned Menditto v. Super Micro Computer, Inc., No. 24-cv-06149 (N.D. Cal.).

Case allegations
Super Micro develops and manufactures high performance server and storage solutions.

The class action lawsuit alleges that defendants throughout the class period made false and/or misleading statements and/or failed to disclose that:

(i) It was subject to consistent overreporting of sales and underreporting of expenses;
(ii) It had re-hired multiple executives who departed in the wake of firm’s prior accounting scandal;
(iii) It had a closer relationship to its related parties than disclosed; and
(iv) It had not ceased exporting products to areas restricted by the United States government as a result of the Russia-Ukraine war, risking government sanction.

The class action lawsuit further alleges that on August 27, 2024, Hindenburg Research unveiled a research report entitled “Super Micro: Fresh Evidence of Accounting Manipulation, Sibling Self-Dealing And Sanctions Evasion At This AI High Flyer.“

Then, on August 28, 2024, the Super Micro class action lawsuit alleges that Super Micro announced it would “Delay Form 10-K Filing for Fiscal Year 2024,” stating that “[a]dditional time is needed for [Super Micro’s] management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024.” On this news, the price of Super Micro stock fell more than 21% over two trading sessions, according to the complaint.

The lead plaintiff process
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Super Micro securities during the Class Period to seek appointment as lead plaintiff in the class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the class action lawsuit.