.August 27, 2024 5:02 PM

Super Micro Computer (NASDAQ:SMCI) shares dropped nearly 9% after a critical report by Hindenburg Research, but recovered to close with just a 2% loss. The report raised concerns about accounting practices and corporate governance, alarming investors. The $35 billion server manufacturer faced scrutiny since a 2018 delisting from Nasdaq for failing to file financial statements. Despite settling with the SEC for $17.5 million in August 2020, Hindenburg claims the company resumed questionable practices. The report alleges improper revenue recognition and rehiring of executives involved in accounting scandals, casting doubt on Super Micro’s governance and transparency.