Super Micro's shares fell 33% following the resignation of auditor Ernst & Young, which cited concerns over governance and board independence. EY’s resignation letter stated it was unwilling to be associated with the financial statements prepared by management, highlighting worries about the board’s autonomy from CEO Charles Liang. EY flagged issues in July that led to an investigation into internal controls following previous SEC troubles and a short-seller report targeting the company's accounting practices. Super Micro has hired a forensic firm to review its internal controls.
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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Supermicro computer shares fell 33% following the resignation of auditor Ernst & Young,
00:07which cited concerns over governance and board independence.
00:10EY's resignation letter stated it was unwilling to be associated with the financial statements
00:16prepared by management, highlighting worries about the board's autonomy from CEO Charles
00:21Liang.
00:22EY flagged issues in July that led to an investigation into internal controls following
00:27previous SEC troubles and a short-sell report targeting the company's accounting practices.
00:33Supermicro has hired a forensic firm to review its internal controls.