Shares of Super Micro Computer surged by an impressive 31% on Monday, reaching $42.73 each, after the company declared that an internal investigation found no evidence of accounting misconduct. This announcement followed a thorough examination by a special committee, comprising legal experts from Cooley LLP and forensic analysts from Secretariat Advisors, which cleared the company of allegations.
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The controversy initially surfaced when Ernst & Young, Super Micro’s previous auditor, resigned in October, citing concerns related to governance and independence. These issues gained further traction due to allegations from short-seller Hindenburg Research and reports indicating a probe by the Department of Justice. Such developments sparked fears that the company could face delisting from Nasdaq for failing to meet the filing deadlines for 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
Despite these challenges, the positive findings of the investigation have restored some investor faith, enabling Super Micro’s stock to recoup a portion of its losses. After reaching a high of $119 per share in March, the company’s value plummeted by 84%, hitting a low of $18 last month.
The results of the investigation have eased fears regarding possible delisting, as Super Micro has devised a strategy to adhere to Nasdaq’s criteria, seeking an extension to file its report by February.
This moment is crucial for the company as it navigates ongoing difficulties, and investor sentiment appears to be leaning favorably toward its potential revival.
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