Are you a former employee of Super Micro Computer, Inc. (SMCI) and own stock in the company? Robbins LLP is investigating breaches of fiduciary duty by the officers and board of directors of SMCI.
Super Micro Computer, Inc. (SMCI) Engaged in Improper Revenue Recognition Scheme
From fiscal year 2013 to fiscal year 2017, Super Micro touted the Company’s rapid growth and issued a series of financial results that consistently met or exceeded the Company’s guidance and expectations, inflating Super Micro’s stock to as high as $27 per share. Then, in August 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 of its improper revenue recognition scheme, it was revealed that 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.