BREAKING: Super Micro Computer stock, $SMCI, falls 27% after Ernst & Young announces they refuse to audit the company going forward.
EY is "unwilling to be associated with the financial statements prepared by management," the statement said.
Not a good look for SMCI. pic.twitter.com/oTi869K1v3
— The Kobeissi Letter (@KobeissiLetter) October 30, 2024
Super Micro’s shares plunged 30% on Wednesday morning after the company disclosed its auditor had resigned following months of disagreement with the firm over its governance and board independence.
Ernst & Young in its resignation letter said it was “unwilling to be associated with the financial statements prepared by management.” The accountancy also raised concerns about the board’s independence from CEO Charles Liang and “other members of management.”
EY had been hired to audit Super Micro for the first time for the 2024 fiscal year, the company said. Super Micro has still not issued its financial statements for this year, and is reportedly under federal investigation.
🚨BIG BREAKING🚨
E&Y that was supposed to replace Deloitte just resigned as $SMCI auditor$SMCI stock imploding in pre-market https://t.co/LCr3lCOBKc pic.twitter.com/YXGdVkwMKB
— JustDario 🏊♂️ (@DarioCpx) October 30, 2024
Oh, look, Mummy! Twins!
Guess who's next? pic.twitter.com/lfW2ObeEp7
— The Great Martis (@great_martis) October 30, 2024
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