Super Micro Computer (SMCI) stock is down more than 27% this morning following the resignation of its auditor, Ernst & Young, due to concerns over governance and transparency. This resignation follows previous allegations of accounting manipulation by short seller Hindenburg Research, along with reports that the company is being probed by the U.S. Department of Justice in relation to its internal accounting controls.
Super Micro has delayed its annual 10-K filing and is in the process of finding a new auditor while a special committee reviews its internal controls. In a filing about today's news, SMCI said it “does not currently expect that resolution of any of the matters raised by EY… will result in any restatements of its quarterly reports for the fiscal year 2024 ending June 30, 2024, or for prior fiscal years.”
