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- Are you an investor in Super Micro Computer, Inc. (NASDAQ: SMCI) and have you owned SMCI shares since at least 2017?
- Are you concerned about the allegations that Super Micro Computer management materially misstated the company’s financial statements?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation via email at arosca@rscounsel.law, leave a message through the contact form on this page, or call us at 888-998-0530.
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Posted July 22, 2022
Super Micro Computer Investigation
Securities attorneys Alan Rosca and Paul Scarlato have been investigating alleged securities violations, corporate misconduct, and questionable business practices and misrepresentations involving Super Micro Computer and have identified potential areas of concern.
SMCI stock investors interested to evaluate potential options to seek compensation and/or pursue claims related to their Super Micro Computer holdings may contact investor rights attorneys Alan Rosca and Paul Scarlato. Attorneys Rosca and Scarlato have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of corporate misconduct and are currently evaluating potential claims on behalf of investors in Super Micro Computer They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, pursuant to court review and approval.
Claims that are not timely pursued may expire or otherwise be lost, generally speaking. Super Micro Computer investors interested to explore options to file claims should consider taking action promptly.
Concerned SMCI stock investors may contact attorneys Alan Rosca or Paul Scarlato to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
The Securities and Exchange Commission Issued Cease and Desist Orders
In August 2020, the Securities and Exchange Commission (“SEC”) issued a press release announcing the charging of Super Micro Computer Inc. and its then CFO, Howard Hideshima, with violations of federal securities laws by engaging in “widespread accounting violations”. According to the cease and desist ordered issued by the Commission, Super Micro improperly and prematurely recognized revenue, and misused its cooperative marketing program. Consequently, the financial statements filed by Super Micro between 2015 and 2017 were allegedly materially misleading, the Commission found.
The SEC ordered SMCI to pay a civil money penalty of $17,500,000.00, and Hideshima was ordered to pay disgorgement of $260,844.00, prejudgment interest of $40,212.00, and a civil money penalty of $50,000.00. Super Micro Computer Inc., and Howard Hideshima agreed to pay the financial penalties, without admitting or denying them.
Simultaneously, the Commission issued a cease-and-desist order against Super Micro’s CEO, Charles Liang. The order required Liang to reimburse the company $2.1 million in stock profits that he received while the alleged accounting errors were occurring. Without admitting or denying Commission’s findings, Charles Liang agreed to reimburse SMCI.
Super Micro Computer Class Action Complaint Alleged Violations of Securities Laws
In February 2018, a class action complaint was filed against Super Micro Computer, Charles Laing, and Howard Hideshima. The plaintiffs alleged materially false and misleading statements in connection with accounting errors in Super Micro’s financial statements, and lack of effective internal controls, the complaint indicates.
Furthermore, in August 2017, Super Micro Computer filed a notice with the SEC announcing company’s inability to timely file the Form 10-K Report. A few months later, SMCI disclosed that its inability to file the 10-K was in caused by a sales transaction “subject to additional inquiry and review.” In January 2018, the company announced the resignations of three executives, including Howard Hideshima, and advised investors that the previously disclosed internal investigation was concluded but additional time was required to “analyze the impact” before the company would be able to file the Annual Report for the year ended June 30, 2017. As a result of company’s inability to file the reports with the SEC, Super Micro Computer was delisted from Nasdaq.
In mid-May 2019, Super Micro Computer issued a Restatement for the years FY13-FY17 and disclosed to investors that “certain employees had violated our Code of Business Conduct and Ethics and discovered accounting and financial reporting errors and certain irregularities.”
As a result, the plaintiffs sought compensatory damages, as well as reasonable costs and expenses, including counsel fees and expert fees. In April 2022, the plaintiffs filed a motion for preliminary approval indicating that the parties agreed to settle the matter.
About Super Micro Computer Inc.
Super Micro Computer Inc. is a San Jose, California, based server technology company founded in 1993. SMC reportedly designs, develops, manufactures and sells server solutions based on modular and open-standard architecture. In addition, the company reportedly provides computing solutions, integration and support services for data centers, cloud computing, enterprise IT, and big data.
Super Micro Computer common stock trades on the NASDAQ Global Select Market under the symbol “SMCI”.
Potential Compensation Claims
Super Micro Computer Shareholders May Have Options
Investor rights attorneys Alan Rosca and Paul Scarlato at Rosca Scarlato LLC are investigating potential options and are evaluating potential claims on behalf of SMCI shareholders. They have decades of combined experience representing victims of corporate or financial misconduct.
If you are a Super Micro Computer investor concerned about your investment, you may contact attorneys Alan Rosca or Paul Scarlato to learn more about your rights and for an evaluation of your case, or to provide useful information. All consultations are free. The Rosca Scarlato LLC attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, Super Micro Computer investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
These general considerations are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. Super Micro Computer investor center is not affiliated with Super Micro Computer Inc.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Recent Investigations
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In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.