DOJ probes Super Micro Computer over accounting violations: WSJ

According to a report from the Wall Street Journal, the Department of Justice is investigating Super Micro Computer (SMCI) for accounting violations following a critical report by activist short-selling firm Hindenburg Research. Super Micro Computer's trading was briefly halted following the news, but has since resumed trading.

Catalysts Hosts Seana Smith and Madison Mills report more on the story and dig into Hindenburg Research's findings.

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This post was written by Melanie Riehl

Video Transcript

We want to get to some breaking news crossing the wire Super Micro computer.

The server maker is being probed by the justice department following a critical report by an activist short selling firm.

This is according to a report from the Wall Street Journal, you can see shares have resumed trading.

They were briefly halted following this report that stock is now off just over 10%.

Now, the Wall Street Journal is reporting that this is still in its early stage.

It appears to be connected to the former employee, a accusation of accounting violations.

Of course, that was one of the things that had been cited in the Hindenburg research uh filing here accusing Super Micro of a number of things that was just, that was just about a month ago to the day.

I believe it was the end of August that that report was released.

So again, now we are here just about a month later with the doj now reportedly probing the company on some of these same accusations and specifically asking questions about that former employee, the whistleblower filing a lawsuit back in April, accusing the company of accounting violations including shipping and billing customers for incomplete equipment that wasn't ready for sale.

So certainly a story, we will continue to monitor.