October 30, 2024 - $Super Micro Computer (SMCI.US)$ shares slumped 30.94% to $33.92 in pre-market trading on Wednesday. The company announced its independent auditor, Ernst & Young resigned over governance and transparency concerns.
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Previously, Hindenburg Research released a report on the company, stating that their investigation found significant red flags regarding Super Micro's accounting practices. The evidence indicated that the company had undisclosed related-party transactions, failures in sanctions and export controls, as well as issues with customers.