03:34 PM EST, 12/02/2024 (MT Newswires) -- Super Micro Computer ( SMCI ) shares surged in Monday late-afternoon trade after the artificial intelligence server maker said that a committee formed to look into the company's governance found no evidence of fraud or misconduct, based on its final findings.

Late in October, Super Micro Computer ( SMCI ) disclosed that Ernst & Young resigned as its auditor, months after the accounting firm highlighted concerns regarding governance and internal controls over financial reporting. Last month, the company said an independent special committee looking into Ernst & Young's concerns preliminarily found no evidence of fraud or misconduct.

Super Micro Computer ( SMCI ) said Monday that the conclusions made by Ernst & Young in its resignation letter were "not supported by the facts" examined in the committee's review.

"The evidence reviewed by the special committee did not raise any substantial concerns about the integrity of Supermicro's senior management or audit committee, or their commitment to ensuring that the company's financial statements are materially accurate," the company said in a statement. The audit committee showed "appropriate independence and generally provided proper oversight" regarding matters pertaining to financial reporting, according to the statement.

Super Micro Computer ( SMCI ) shares rallied 30% in Monday late-afternoon trade. So far this year, the stock has jumped 48%.

The company said its board has adopted all the recommendations made by the special committee, including appointing a new chief financial officer. David Weigand will continue as CFO until a successor is named. Vice President of Finance and Corporate Controller Kenneth Cheung has been named chief accounting officer, while Super Micro Computer ( SMCI ) is accelerating its search for a chief compliance officer and a general counsel.

"The special committee found that the company's ability to properly oversee and monitor guardrails related to (certain) rehired employees was impacted because the CFO/(chief compliance officer) functions were combined longer than anticipated," according to the statement.

The company reiterated that it doesn't expect any restatements of its quarterly reports for fiscal 2024 or for its previous fiscal years.

In August, short-seller Hindenburg Research accused Super Micro Computer ( SMCI ) of "accounting manipulation." The company engaged BDO USA as its independent auditor last month.

Price: 42.18, Change: +9.54, Percent Change: +29.23