Posted by BeauHD from the under-investigation dept.
According to the Wall Street Journal, the U.S. Department of Justice is investigating Super Micro Computer after short-seller Hindenburg Research alleged “accounting manipulation” at the AI server maker. Super Micro’s shares fell about 12% following the report. Reuters reports: The WSJ report, which cited people familiar with the matter, said the probe was at an early stage and that a prosecutor at a U.S. attorney’s office recently contacted people who may be holding relevant information. The prosecutor has asked for information that appeared to be connected to a former employee who accused the company of accounting violations, the report added.
Super Micro had late last month delayed filing its annual report, citing a need to assess “its internal controls over financial reporting,” a day after Hindenburg disclosed a short position and made claims of “accounting manipulation.” The short-seller had cited a three-month investigation that included interviews with former senior employees of Super Micro and litigation records. Hindenburg’s allegations included evidence of undisclosed related-party transactions, failure to abide by export controls, among other issues. The company had denied Hindenburg’s claims.
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