Business

Super Micro Shares Tumble After Hindenburg Alleges Accounting Manipulation

Aug 27, 2024 1 min read

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Hindenburg Research has accused Super Micro Computer of accounting manipulation, leading to an approximate 8% drop in the company's shares. The short seller's three-month investigation involved interviews with former senior employees and industry experts. It uncovered alleged accounting irregularities, undisclosed related party transactions, sanctions and export control failures, and customer issues.

The report highlights that Super Micro was previously delisted from Nasdaq in 2018 for failing to file financial statements and later settled with the SEC for $17.5 million over accounting violations. Despite this, Super Micro reportedly re-hired top executives implicated in the previous scandal. Hindenburg's allegations also point to the company's relationships with both disclosed and undisclosed related parties as potential grounds for further dubious accounting practices. Super Micro did not immediately respond to requests for comment, and the claims have not been independently verified by Reuters.

#finance #markets #tech #europe-public-private-sector

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