Part 5/8:
Super Micro Computer's troubled history includes a tumultuous period in mid-2018 when trading of its stock on NASDAQ was suspended due to accounting issues that led to a significant share price drop. These issues involved premature revenue recognition practices, where the company allegedly recorded sales before the products were legitimately delivered to clients.
After weathering scrutiny and settling with the SEC in 2020 for $7.5 million, Super Micro made an effort to improve its compliance and internal controls. Nevertheless, controversies resurfaced with the recent allegations from Hindenburg, raising questions about whether the company has truly addressed its past issues.