Super Micro Computer pops 20% after special committee finds no ‘evidence of misconduct’

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Super Micro Computer pops 20% after special committee finds no ‘evidence of misconduct’

Charles Liang, CEO of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, on June 5, 2024.

Annabelle Chih | Bloomberg | Getty Images

Shares of Super Micro Computer surged more than 20% after a special committee ruled it

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at the embattled artificial intelligence server maker, and appointed a new chief accounting officer.

“The evidence reviewed by the Special Committee did not raise any substantial concerns about the integrity of Supermicro’s senior management or Audit Committee, or their commitment to ensuring that the Company’s financial statements are materially accurate,” Super Micro said in a release.

Super Micro said it’s also currently searching for a new chief financial officer, and looking to fill additional financial leadership positions. The company appointed current Vice President of Finance and Corporate Controller Kenneth Cheung as its chief accounting officer.

The news from Super Micro comes on the heels of a volatile year for the company. Its shares sank in August after Hindenburg Research revealed a short position in the company, saying that it found “fresh evidence of accounting manipulation” and that Super Micro delayed the release of its annual filing.

Those troubles continued, with Ernst & Young resigning as the company’s auditor in October due to concerns about the board’s governance and independence. Super Micro shares are up about 30% this year, after giving back much of their rally. Last month, the company averted a potential delisting from the Nasdaq following its monster plunge.

Among the findings, the committee ruled that the conclusions reached by Ernst & Young in its resignation were “not supported by the facts” and that the firm’s audit committee exhibited “appropriate independence and generally provided proper oversight.”

The special committee consisted of a member of Super Micro’s board, counsel from Cooley LLP and a team from forensic accounting firm Secretariat Advisors.

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