The translation of the heading to English is: "Auditor Resignation Plunges Super Micro Stock into Chaos

  • Ernst & Young resigns as auditor of Super Micro Computer.
  • Company's stock prices plummet by 34% due to resignation.

Eulerpool News·

The U.S. investment company announced on October 30th that it would suspend its buy recommendation for the shares of Super Micro Computer. The manufacturer of liquid-cooled AI servers came under scrutiny after its auditing firm, Ernst & Young, submitted its resignation. In a document filed with the U.S. Securities and Exchange Commission, Super Micro stated that Ernst & Young had communicated the decision via a letter to the company's audit committee. The auditors noted, "We are resigning due to recently discovered information based on which we can no longer rely on the representations of management and the audit committee." The renowned "Big Four" auditing firm refused to be associated with the financial reports prepared by management. Given the assessment that a compliant collaboration was no longer possible, they withdrew. The resignation of Ernst & Young, who were engaged to audit the fiscal year up to June 30th of the previous year, deeply unsettled investors. This resulted in a dramatic plunge in the stock price of the San Jose, California-based company. After peaking at $122.90 in March, the stock recently plummeted 34% to $32.42. Ernst & Young had already expressed concerns in July regarding various aspects of corporate governance, transparency, and communication, questioning the independence of the supervisory board in relation to management and leadership. Subsequently, the company commissioned an independent committee to examine these allegations. While Super Micro disagreed with Ernst & Young's decision, it emphasized taking the concerns seriously and carefully reviewing the results of the specialized investigation. As a result, Needham's rating was temporarily suspended due to Ernst & Young's resignation.
EULERPOOL DATA & ANALYTICS

Make smarter decisions faster with the world's premier financial data

Eulerpool Data & Analytics