Class Action Filed on Behalf of SMCI Shareholders Who Purchased Super Micro Securities Between January 27, 2017 and January 30, 2018, Both Dates Inclusive
Kehoe Law Firm, P.C continues its investigation of California-based Super Micro Computer, Inc., “a global leader in high performance, high efficiency server technology and innovation” which “develop[s] and provide[s] end-to-end green computing solutions to the data center, cloud computing, enterprise IT, big data, high performance computing, or HPC, and embedded markets.”
A class action lawsuit was recently filed against Super Micro Computer, Inc. (NASDAQ:SMCI) and certain of its officers in United States District Court, Northern District of California, on behalf of a class of investors who purchased, or otherwise acquired, SMCI securities to try to recover compensable damages caused by the SMCI defendants’ alleged violations of the Securities Exchange Act of 1934.
According to the class action complaint, throughout the January 27, 2017 to January 30, 2018 Class Period, SMCI defendants allegedly made materially false and misleading statements regarding Super Micro’s business, operational and compliance policies. Specifically, the Super Micro defendants made false and/or misleading statements and/or failed to disclose that Super Micro’s financial statements contained accounting errors, including errors with respect to one of the Company’s sales transactions; as such, Super Micro’s internal controls were not effective. Further, Super Micro allegedly lacked the capability to timely review and assess the impact of the foregoing issues, and, as a result, Super Micro’s public statements were materially false and misleading at all relevant times.
Super Micro Computer’s Stock Price Drops Between August 2017 and January 2018
According to the class action complaint:
On August 29, 2017, post market, Super Micro filed a Notice of Late Filing with the SEC advising that it was not able to file a Form 10-K for the fiscal year ended June 30, 2017. On this news, Super Micro’s share price fell $1.35, or 4.96%, to close at $25.85 on August 30, 2017.
On October 26, 2017, post-market, Super Micro reaffirmed the delay in filing the Form 10-K, and Super Micro told investors that the transaction at issue “was originally recorded as revenue during the quarter ended December 31, 2016. However, prior to review by the Company’s independent auditors and prior to the Company’s public announcement of its results for the quarter, the recognition of revenue was reversed and the revenue was subsequently recognized in the quarter ended March 31, 2017.” On this news, Super Micro’s share price fell $1.23, or 5.65%, to close at $20.48 on October 27, 2017.
On January 30, 2018, post-market, Super Micro announced the resignation of three executives, as well as that Super Micro’s “Audit Committee has completed the previously disclosed investigation,” and that “[a]dditional time is required to analyze the impact, if any, of the results of the investigation on the Company’s historical financial statements, as well as to conduct additional reviews before the Company will be able to finalize its Annual Report on Form 10-K for the fiscal year ended June 30, 2017.” Following this news, Super Micro’s share price fell $1.83, or 7.4%, to close at $22.83 on January 31, 2018.
Super Micro Computer Shareholders and Investors
If you purchased Super Micro Computer Securities Between January 27, 2017, and January 30, 2018, both dates inclusive, and have questions or concerns about your potential legal rights or claims, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right, or e-mail [email protected].