Hindenburg Research discloses short position in server maker Super Micro

According to the media reports, the research firm has underlined several key concerns regarding Super Micro’s accounting and corporate governance practices. 

“Our 3-month investigation, which included interviews with former senior employees and industry experts as well as a review of litigation records, international corporate and customs records, found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues,” Hindenburg Research wrote in the report. 

The company has been under the radar of the regulators since the 2018 delisting from Nasdaq for not being able to file financial statements. 

In the report, the short seller wrote, "Less than 3 months after paying a $17.5 million SEC settlement, Super Micro began re-hiring top executives that were directly involved in the accounting scandal, per litigation records and interviews with former employees."

The allegations against the company include improper revenue recognition and rehiring executives with controversial backgrounds.