RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Super Micro Computer, Inc. (Nasdaq: SMCI) (“Super Micro” or the “Company”) on behalf of purchasers of the Company’s securities between August 5, 2016 and January 30, 2018, inclusive (the “Class Period”).
Super Micro shareholders who purchased securities during the Class Period may, no later than April 9, 2018, seek to be appointed as a lead plaintiff representative of the class.
Shareholders who wish to discuss this action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys D. Seamus Kaskela or Adrienne Bell at (888) 299-7706 or online at: https://www.ktmc.com/new-cases/super-micro-computer-inc-2018#join.
Super Micro develops and provides high performance server solutions based upon an innovative, modular and open-standard architecture.
The shareholder class action complaint alleges that the Defendants made a series of false and misleading statements to investors during the Class Period and failed to disclose that: (1) Super Micro was improperly and illicitly recognizing revenue on certain sales transactions; (2) the Company failed to implement and maintain proper internal controls over its financial reporting (3); Super Micro's revenues and income were artificially inflated as a result of its illicit business practices; and (4) these practices caused the Company to be vulnerable to potential civil and criminal liability, and adverse regulatory action.
Investors first learned of potential accounting and financial reporting issues at Super Micro on August 29, 2017, when the Company filed a Notice of Late Filing with the SEC and disclosed that it was “not in a position to file its Form 10-K for fiscal year ended June 30, 2017 (the ‘Form 10-K’), in a timely manner because the [Company] cannot complete the Form 10-K in a timely manner without unreasonable effort or expense.”
Following this news, shares of Super Micro’s stock declined $1.35 per share, or 5%, to close on August 30, 2017 at $25.85 per share, on heavy trading volume.
Then, on January 30, 2018, Super Micro announced that its Chief Financial Officer, and other senior executive officers, had resigned. Additionally, Super Micro disclosed that, although the Company’s Audit Committee had completed an investigation of the matter, additional time was required “to analyze the impact, if any, of the results of the investigation on the Company’s historical financial statements, as well as to conduct additional reviews before the Company will be able to finalize its Annual Report on Form 10-K.”
Following this news, shares of Super Micro’s stock declined an additional $1.83 per share, or 7.4%, to close on January 31, 2018 at $22.83 per share, again on heavy trading volume.
Super Micro shareholders may, no later than April 9, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.