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The Wall Street Journal reported that Super Micro Computer, Inc. (SMCI) is under investigation by the U.S. Department of Justice (DOJ) due to allegations of accounting irregularities. This probe follows claims made by Hindenburg Research, a short-seller firm, which accused SMCI of engaging in accounting manipulation, undisclosed related party transactions, and failing to comply with export control regulations. The investigation is still in its early stages, with a prosecutor from the U.S. Attorney's Office in San Francisco gathering more information, particularly from a whistleblower lawsuit filed by a former employee of SMCI earlier this year. This lawsuit alleges that the company improperly recognized revenue between 2020 and 2022.

The news caused SMCI's stock to drop by more than 12%, with the company also delaying its 10-K filing as it works on internal assessments related to financial reporting

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