Super Micro Plunges as Prosecutor Reviews Accounting Claims

Justice Department seeking more on ex-employee’s allegations
Shares tumbled 12% on Thursday when WSJ first reported inquiry

WATCH: Super Micro is under investigation by the Justice Department following a short-seller report that raised questions about the company’s accounting practices, the Wall Street Journal reported. Bailey Lipschultz reports.Source: Bloomberg

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By Sabrina Willmer

September 26, 2024 at 3:35 PM UTC

Updated on

September 26, 2024 at 10:12 PM UTC

This article is for subscribers only.

Super Micro Computer Inc. fell the most in a month on a report that the US Justice Department is looking into an ex-employee’s claims that the server maker violated accounting rules just a few years after settling a bookkeeping case with a top financial regulator.

A prosecutor at the US attorney’s office in San Francisco recently reached out to people who may have relevant information about the allegations, according to a person familiar with the matter. The inquiry was reported earlier Thursday by the Wall Street Journal, which cited a case against Super Micro by former employee, Bob Luong.