US investigation into Super Micro following Hindenburg report, according to WSJ

(Bloomberg) — Super Micro Computer Inc. is being investigated by the U.S. Justice Department after a report on short sellers raised questions about the company’s accounting practices, The Wall Street Journal reported.

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A prosecutor with the U.S. Attorney’s Office in San Francisco recently reached out to people who might have relevant information, according to the report. The prosecutor was seeking information apparently concerning a former employee who had accused the company of accounting violations and previously filed a whistleblower lawsuit against the company and its chief executive, the report said.

Shares fell as much as 17 percent to $382.29 in New York on Thursday, marking the biggest drop in nearly a month. They had risen 61 percent this year through Wednesday.

Representatives for Super Micro Computer and the Justice Department did not immediately respond to requests for comment.

In August, Hindenburg Research wrote that the company had “glaring accounting red flags, evidence of undisclosed transactions with affiliates, violations of sanctions and export controls, and customer problems.”

– With support from Chris Strohm and Ian King.

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