NEW YORK, Oct. 23, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Super Micro Computer, Inc. (NASDAQ: SMCI) on behalf of long-term stockholders. Our investigation concerns whether the board of directors of Super Micro have breached their fiduciary duties to the company.
Super Micro had a precarious few years in which it missed SEC financial disclosure deadlines due to accounting irregularities and was subject to an investigation by the SEC for its accounting practices. The Company’s deteriorating operating performance led to a corresponding decline in its stock price. To combat this, certain Super Micro officers and directors engaged in a scheme to improperly recognize revenue when shipping unfinished product or when shipping to the Company's warehouses. At the same time, the officers and directors falsely reassured investors regarding the accuracy of the Company's financial reporting.
Then, in October 2017, Super Micro announced that it would be unable to timely file its fiscal year 2017 Form 10-K. Super Micro failed to file its required SEC filings for the next twenty months, resulting in the Company’s delisting from the Nasdaq and the termination of three members of its senior management.
Finally, on May 17, 2019, Super Micro issued a restatement for a five-year period (2013-2017) admitting that the Company and its officers and managers were aware of, engaged in, and concealed sales and accounting misconduct motivated by an aggressive focus on increasing quarterly financial results. As a result, Super Micro's earnings per share and revenues were artificially inflated by 32% and $40 million, respectively, and the Company incurred $109 million in investigatory costs.
The Company is the subject of a federal securities class action and a cease-and-desist order issued by the SEC, which required Super Micro to pay $17.5 million due to its misconduct.
If you are a long-term stockholder of Super Micro, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com