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Super Micro Computer’s stock saw a massive 31% surge on Monday, reaching $42.73 per share, after the company confirmed that an internal investigation found no evidence of accounting misconduct. This news came after a special committee, including experts from Cooley LLP and forensic firm Secretariat Advisors, reviewed the allegations and cleared the company of any wrongdoing.
The controversy began when Ernst & Young, Super Micro’s previous auditor, resigned in October, citing concerns over governance and independence. These concerns were amplified by short-seller Hindenburg Research and reports of a Department of Justice probe. This led to fears that the company could face delisting from the Nasdaq after missing deadlines for filing its annual report.
Sorry. Don't believe it.
MW Super Micro's stock soars as internal probe finds no evidence of fraud by management $smci pic.twitter.com/ZRc9whS9mh
— Adrian (@squawk_hawk) December 2, 2024
However, the investigation’s positive outcome has helped restore investor confidence, and the company’s stock has regained some ground. After reaching a high of $119 per share in March, Super Micro saw a dramatic drop of 84%, touching an all-time low of $18 last month.
The report’s findings have alleviated fears about delisting, as Super Micro has since submitted a plan to meet Nasdaq compliance requirements, with the hope of securing a new deadline to file its report in February.
This marks a key moment for the company as it navigates through challenges, and it’s clear that investors are hopeful about its recovery.
