(Bloomberg) — Super Micro Computer Inc. The short seller is under investigation by the US Department of Justice following a report that raised questions about the company’s accounting practices, the Wall Street Journal reported.
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According to the report, an attorney at the U.S. Attorney’s office in San Francisco recently reached out to people who may have relevant information. According to the report, the attorney requested information that appeared to be related to a former employee who accused the company of accounting violations, and filed a whistleblower lawsuit against the company and its CEO.
Shares fell as much as 17% to $382.29 in New York on Thursday, marking the biggest decline in nearly a month. It is up 61% this year through Wednesday.
Representatives for Super Microcomputer and the Justice Department did not immediately respond to requests for comment.
In August, the Hindenburg Research Institute wrote that “visible flashing account red flags include evidence of undisclosed related party transactions, embargoes and export control failures, and customer issues.”
–With help from Chris Strom and Ian King.
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2024-09-26 21:05:19