Stock Trading Paused Twice Amid Investigation Reports

  • Super Micro Computer shares drop 13% after WSJ report of DOJ probe
  • Justice Department investigating company following activist short-selling firm’s critical report
  • Trading paused twice due to volatility after Journal’s report
  • Probe in early stages, according to sources familiar with the matter

Shares of Super Micro Computer plummeted by 13% following a Wall Street Journal report revealing that the company is under investigation by the Department of Justice. The stock, which had risen about 50% this year, was trading around $398 when it resumed at 11:03 a.m. ET after being paused twice due to volatility. The Wall Street Journal reported that the probe is in its early stages and cited people familiar with the matter. It also mentioned that a prosecutor from the U.S. attorney’s office in San Francisco had contacted potential witnesses related to an alleged whistleblower lawsuit filed by a former employee, accusing the company of accounting violations.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the stock market reaction and the ongoing investigation by the Justice Department. It cites a reputable source (The Wall Street Journal) and includes relevant details without any apparent bias or personal perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about a stock drop and an ongoing investigation but lacks in-depth analysis or actionable insights.
Public Companies: Super Micro Computer (SMCI)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Super Micro Computer shares
Financial Rating Justification: The article discusses a stock price drop and trading pause due to an ongoing investigation by the Justice Department, which directly impacts the financial market and the company’s shares.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crash or Crisis
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The extreme event is a financial crisis caused by the stock market reaction to the news of an ongoing investigation into potential accounting violations at Super Micro Computer, resulting in a significant drop in share prices and trading volatility.
Move Size: The market move size mentioned in this article is 13%.
Sector: Technology
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Reported publicly: www.marketwatch.com