Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Super Micro Computer, Inc. (NasdaqGS: SMCI).
On October 26, 2017, the Company disclosed an investigation into revenue recorded in 2Q 2017 (ended 12/31/2016), extending a prior delay for filing its 2017 10-K. Then, on August 22, 2018, the Company disclosed that its stock was being delisted for its ongoing failure to file its 2017 10-K and 10-Q reports. Then, on November 15, 2018, the Company disclosed that its financial statements for each of the quarterly and annual periods during FY15, FY16 and the first three quarters of FY17 should no longer be relied upon because of errors “primarily related to the timing of recognition of revenue and classification of certain inventory.” Then, on May 17, 2019, the Company filed restated financial results for FY15-FY17, also describing material weaknesses in internal controls, including “a culture of aggressively focusing on quarterly revenue without sufficient focus on compliance,” among other things.
On August 25, 2020, the SEC issued cease and desist orders against the Company and certain executives for violations of federal securities laws, including “antifraud, reporting, books and records, and internal accounting controls provisions,” and fined the Company $17.5 million.
The Company has also been sued in a securities class action lawsuit for failing to disclose material information to investors, violating federal securities laws, which is ongoing.
KSF’s investigation is focusing on whether Super Micro’s officers and/or directors breached their fiduciary duties to Super Micro’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Microchip shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or fill out the form on this page.