Super Micro Computer—Hindenburg Research published short report alleging Supermicro repeated accounting manipulation; Ernst & Young resigned as auditor
In August 2024, Hindenburg Research published a report alleging Supermicro had returned to the same accounting manipulation practices that led to its previous SEC charges, including related-party transactions and sanctions evasion. Ernst & Young subsequently resigned as Supermicro's auditor in October 2024, citing concerns about governance and transparency. The DOJ opened an investigation. Supermicro faced potential NASDAQ delisting again before filing delayed reports.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Corporate Governance | -against | primary | -1.00 |
| Corporate Transparency | -against | primary | -1.00 |
| Overall incident score = | -1.144 | ||
Score = avg(topic contributions) × significance (critical ×2) × confidence (0.57)
Evidence (1 signal)
Hindenburg Research published short report alleging Supermicro resumed accounting manipulation
Hindenburg Research released a detailed report claiming Supermicro had returned to its previous accounting manipulation practices, including undisclosed related-party transactions with entities controlled by CEO Charles Liang's family and potential sanctions evasion. Ernst & Young subsequently resigned as auditor.