super micro computer -- accounting fraud and doj investigation
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case overview
multiple consolidated securities class actions have been filed against super micro computer, the ai server maker, alleging systematic accounting fraud, undisclosed related-party transactions, and violations of trade controls. the company also faces parallel doj and sec investigations.
| Case | Averza v. Super Micro Computer, Inc., No. 5:24-cv-06147 |
| Court | U.S. District Court, Northern District of California |
| Filed | August 2024 (expanded October 2024) |
| Class Period | February 2, 2021 — September 25, 2024 |
| Parallel Investigations | DOJ + SEC |
| Auditor Resignation | Ernst & Young (October 2024) |
| Status | Active + DOJ probe |
allegations
- accounting manipulation: consistent overreporting of sales and underreporting of expenses; financial statements not prepared in accordance with gaap
- related-party transactions: undisclosed transactions closer than disclosed, including dealings with entities controlled by family members
- sanctions violations: exports of products to sanctioned/restricted areas in violation of u.s. government restrictions related to the russia-ukraine war
- internal controls: ineffective internal controls over financial reporting
- prior conduct: rehiring of executives who departed following a prior accounting scandal
key events
august 27, 2024
hindenburg research published “super micro: fresh evidence of accounting manipulation, sibling self-dealing and sanctions evasion at a company already caught doing it once,” alleging “glaring accounting red flags.”
august 28, 2024
smci announced it would not timely file its annual 10-k for fy ended june 30, 2024. stock declined more than 19%.
september 26, 2024
the wall street journal reported the doj had initiated an investigation, reportedly based on whistleblower allegations.
october 24, 2024
ernst & young resigned as auditor, stating it was “unwilling to be associated” with management’s financial statements and citing concerns about “integrity and ethics.” stock crashed 33%, erasing approximately $10 billion in market value.
february 2025
smci filed delinquent annual and quarterly reports after appointing bdo as replacement auditor. bdo issued an “adverse opinion” on internal controls. the company regained nasdaq compliance.
significance
the smci case is the most extensive data center supply chain securities fraud case, involving federal criminal investigation, sec enforcement, auditor resignation, and near-delisting. the company’s prominence as a major supplier of ai server infrastructure makes the case particularly significant for the broader sector.
sources
- hindenburg research: smci report
- hagens berman: smci expanded class action
- cnbc: super micro auditor resigns
- cfo dive: supermicro doj sec subpoenas
last updated: february 22, 2026