Why Super Micro Computer Stock Is Crashing Today
Super Micro Computer (NASDAQ: SMCI) stock is getting crushed in Wednesday's trading following news that the company's auditing firm has resigned. The server specialist's share price was down 31.6% as of 12:30 p.m. ET.
Supermicro published a regulatory filing with the Securities and Exchange Commission (SEC) today that revealed that Ernst & Young (EY) had resigned as its financial auditor. In its resignation letter, EY said that it was stepping back from the role because it could not "rely on management's and the audit committee's representations."
News of EY's resignation has raised a new round of concerns about accounting at Supermicro. In August, Hindenburg Research published a short seller's report alleging that the tech company was a serial offender when it came to bad accounting and financial practices.
Source Fool.com
