Purchasers Of Super Micro Computer Inc. Common Stock May Be Eligible To Payment From the Super Micro Computer Fair Fund

Rhea-AI Summary

A notice from KCC Class Action Services informs investors of Super Micro Computer Inc. (SMCI) that they may be eligible for a distribution from a Fair Fund established by the SEC due to improper accounting practices between October 22, 2014, and January 30, 2018. The SEC found that the company engaged in premature revenue recognition and understated expenses, resulting in a civil penalty of $17.5 million for SMC and additional penalties for former CFO Howard Hideshima. Investors can submit claims until September 18, 2021, for potential compensation from the Fund, totaling over $17.8 million.

Positive

• Establishment of a Fair Fund totaling $17,851,056 for affected shareholders.
• Potential compensation available for investors who held SMCI stock during the specified period.

Negative

• Civil penalty of $17,500,000 imposed on SMC, indicating serious violations.
• Improper accounting practices, including premature revenue recognition and understated expenses, raise concerns about financial integrity.

PROVIDENCE, R.I., May 21, 2021 /PRNewswire/ -- The following statement is being issued by the Fund Administrator, KCC Class Action Services:

In the Matters of
Super Micro Computer, Inc.
and
Howard Hideshima

SECURITIES AND EXCHANGE COMISSION
ADMINISTRATIVE PROCEEDING
File Nos. 3-19927 and 3-19928

SUPER MICRO COMPUTER, INC. FAIR FUND
DISTRIBUTION PLAN NOTICE

If you purchased or acquired Super Micro Computer Inc. ("SMC") common stock, listed on the Over-the-Counter Market and the Nasdaq Stock Market, LLC and traded under the trading symbol SMCI during the period October 22, 2014 through January 30, 2018, inclusive, you may be eligible for a distribution from the Fair Fund created in the captioned proceedings (the "Fair Fund").

What is this All About?

On August 25, 2020, the Securities and Exchange Commission ("SEC") filed the captioned administrative proceedings against Super Micro Computer, Inc. and Howard Hideshima (the "Respondents").¹ In the Orders, entered upon the Respondents' consents, the SEC determined that SMC, a producer of computer servers headquartered in California, engaged in improper accounting—prematurely recognizing revenue and understating expenses from at least fiscal year ("FY") 2015 through FY 2017. As a result, SMC filed with the SEC materially misstated financial statements in its annual, quarterly and current reports during the period. The SEC further determined, among other things, that Howard Hideshima, the former Chief Financial Officer of SMC, signed and/or approved annual, quarterly and current reports with the SEC that contained materially misstated financial statements. As a result of the conduct described in the Orders, the Commission ordered SMC to pay a civil money penalty of $17,500,000.00, and Hideshima to pay disgorgement of $260,844.00, prejudgment interest of $40,212.00, and a civil money penalty of $50,000.00 to the SEC. The SEC further established the Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the collected civil penalties could be distributed to investors harmed by the conduct described in the Orders. The Fair Fund is comprised of $17,851,056.00 paid by SMC and Hideshima and is held in an interest-bearing account at the United States Department of the Treasury's Bureau of the Fiscal Service.

If you purchased or acquired Super Micro Computer Inc. common stock, listed on the Over-the-Counter Market and the Nasdaq Stock Market, LLC and traded under the trading symbol SMCI (the "Security") during the period October 22, 2014 through January 30, 2018, inclusive (the "Relevant Period"), and you are not an Excluded Party (as defined in the Distribution Plan available on the Fair Fund website, www.SMCFairFund.com), you should submit a claim because you may be eligible for a distribution from the Fair Fund.

If you would like to be considered for a distribution from the Fair Fund, you must either submit a Proof of Claim online pursuant to the directions on the Fair Fund website, www.SMCFairFund.com, or download a Proof of Claim Form at www.SMCFairFund.com and submit a completed and signed Proof of Claim Form by mail. The deadline for submitting a completed Proof of Claim is September 18, 2021.

You may obtain further information at the Fair Fund website at www.SMCFairFund.com. You may obtain claim forms and seek additional information from the Fund Administrator at:

Phone: (800) 581-8660
Email: info@SMCFairFund.com
Physical Address:

Super Micro Computer, Inc. Fair Fund
c/o KCC Class Action Services
Fund Administrator
P.O. Box 43034
Providence, RI 02940-3034

¹ Securities Act Rel. No. 10822 (Aug. 25, 2020); Exchange Act Rel. No. 89657 (Aug. 25, 2020).

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SOURCE KCC Class Action Services

FAQ

What is the Super Micro Computer Fair Fund?

The Fair Fund is a compensation pool established by the SEC for investors harmed by Super Micro Computer's accounting misconduct.

Who can claim from the Fair Fund related to SMCI?

Investors who purchased SMCI stock between October 22, 2014, and January 30, 2018, may be eligible to claim.

What is the deadline to submit a claim for the Fair Fund?

The deadline to submit a completed Proof of Claim is September 18, 2021.

How much compensation is available from the Fair Fund for SMCI shareholders?

The Fair Fund totals $17,851,056, which will be distributed to eligible claimants.

What violations led to the establishment of the Fair Fund for Super Micro Computer?

The SEC determined that Super Micro engaged in improper accounting by prematurely recognizing revenue and understating expenses.