Supermicro stock tanked 35% today after accounting firm Ernst & Young resigned. The firm's resignation, which cites unreliable management and possible law violations, comes one month after the Department of Justice investigated Supermicro for possible accounting manipulation and export violations. Supermicro's stock value has been the lowest since January of this year.
Ernst & Young's letter, cited in an SEC filing, reads, "We are resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management's and the Audit Committee’s representations and to be unwilling to be associated with the financial statements prepared by management, and after concluding we can no longer provide the Audit Services under applicable law or professional obligations."
