Super Micro's shares jump after server maker says review finds no evidence of misconduct
Just over a month after Ernst & Young resigned as its public accounting firm, Super Micro Computer says a review committee has found no evidence of fraud or misconduct among the server maker’s leadership
NEW YORK — Just over a month after Ernst & Young resigned as its public accounting firm, Super Micro Computer says a review committee has found no evidence of fraud or misconduct among the server maker’s leadership.
Super Micro is also searching for a new chief financial officer and appointing other executives per recommendations from the committee, which began its review several months ago — after EY communicated concerns over issues like transparency, internal control related to financial reporting and integrity of management while conducting its first audit for the company.
Additional information that emerged during this review eventually led EY to resign as Super Micro's public accountant in October. Super Micro, which disagreed with EY's decision, later appointed BDO as its new independent auditor last month.
Super Micro announced that the committee, formed by the board as well as external counsel, completed its review on Monday. The company said that the conclusions EY laid out in its resignation “were not supported by the facts” found in this probe — maintaining that there was no evidence of misconduct.
As a result, Super Micro does not expect past financial reports to be restated. Shares for Super Micro climbed over 20% Monday morning.
Beyond the findings of this review, Super Micro also laid out plans to appoint new leadership, which it says follow recommendations from the committee. Super Micro disclosed that it has begun looking for a new CFO, with David Weigand continuing in the role until the board names a
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