According to the Complaint, Super Micro Computer, Inc. is an international company that develops, manufactures, and provides server and storage systems for various markets, including data centers, cloud computing, AI, 5G, and edge computing. This lawsuit was filed against Super Micro and two of its Officers.

During the Class Period, Defendants provided investors with material information concerning SMCI’s financial results for the fiscal years 2021 through 2024. Defendants’ statements included, among other things, reports of continued significant growth with increasing financial success year after year, a healthy relationship with its related parties, and was in compliance with United States export restrictions. The Complaint alleges that Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of SMCI’s accounting; notably, that it was subject to consistent overreporting of sales and underreporting of expenses, that it had re-hired multiple executives who departed in the wake of the Company’s prior accounting scandal, that the Company has a closer relationship to its related parties than disclosed, that SMCI had more related parties than it had disclosed, and that the Company had not ceased exporting products to areas restricted by the United States government as a result of the Russia-Ukraine war, risking government sanction.

On August 27, 2024, Hindenburg Research unveiled a short report on SMCI. The short report detailed several allegations against the Company, including that Hindenburg “found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and control failures, and customer issues.” The Complaint alleges that investors and analysts reacted immediately to these revelations leading to a dramatic decline in the price of the Company's common stock.