Super Micro Stock Drops 33% After Auditor Resigns, Saying It Was 'Unwilling' To Be Tied With The Financial Statements Prepared By Management.

Benzinga 2024-10-31

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Super Micro's shares fell 33% following the resignation of auditor Ernst & Young, which cited concerns over governance and board independence. EY’s resignation letter stated it was unwilling to be associated with the financial statements prepared by management, highlighting worries about the board’s autonomy from CEO Charles Liang. EY flagged issues in July that led to an investigation into internal controls following previous SEC troubles and a short-seller report targeting the company's accounting practices. Super Micro has hired a forensic firm to review its internal controls.

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