According to the complaint, throughout the Class Period, Super Micro and senior executives reported strong demand, surging revenue growth, and increased product shipments. The Company also represented that it adhered to U.S. and other applicable trade control regulations, including the fact that it had made no sales in the Russian Federation during 2023 and 2024, and no sales to the Russian Federal Security Service (“FSB”).

On August 27, 2024, the truth began to emerge when Hindenburg Research issued a research report titled "Super Micro: Fresh Evidence of Accounting Manipulation, Sibling Self-Dealing and Sanctions Evasion at this AI High Flyer." In its Report, Hindenburg claimed to have uncovered “glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.” As detailed in the Report and corroborated by a recent whistleblower lawsuit, these accounting manipulations included the improper recognition of revenue, the recognition of incomplete sales, channel stuffing, and the circumvention of internal accounting controls. Hindenburg also reported that Super Micro had evaded U.S. export controls and had shipped approximately $210 million of products to Russia between February 2022 and June 2024.

As a result of these disclosures, the price of Super Micro common stock declined by $14.87 per share, or 2.64%, to close at $547.64 per share on August 27, 2024.

Then, on August 28, 2024, Super Micro announced that it would not be timely filing its Form 10-K annual report, as it was assessing the “design and operating effectiveness of its internal controls over financial reporting.” As a result of these disclosures, the price of Super Micro common stock fell $104.15 per share, or 19.02%, to close at $443.49 per share on August 28, 2024.

Investors who purchased Super Micro securities between February 2, 2021 through August 28, 2024, may no later than October 29, 2024, seek to be appointed as a lead plaintiff representative of the class.