Super Micro Computer stock fell after EY resigned as the company's auditor

Super Micro Computer ( SMCI ) shares fell on Wednesday after accounting firm EY stepped down as the company's auditor following months of speculation about the company's accounting practices.

EY, one of the country's “Big Four” accounting firms, told Super Micro Computer's board that “this decision is due to information that has recently come to our attention that we can no longer rely on the representation of management and the audit committee.” EY added that it ” does not wish to be associated with the financial statements prepared by management.”

Super Micro Computer said it disagreed with EY's decision, as the audit it hired EY last year to complete had not yet been completed, and it took seriously the accounting firm's concerns about “whether the company demonstrates a commitment to integrity”.

The EY resignation follows months of speculation over Super Microcomputer's accounting

The resignation comes as Super Microcomputer's stock has slumped in recent months after it delayed its annual 10K filing and a report by short seller Hindenburg Research alleging “accounting manipulation” and other issues.

Last month, reports surfaced that the Justice Department had launched an investigation into Super Micro Computer's accounting practices following the Hindenburg Report.

After EY's resignation, Hindenburg founder Nate Anderson said the firm's resignation letter was “as strongly worded as I've seen” and suggested EY's decision could lead to partners like Nvidia (NVDA) doing business with supermicrocomputers.

Super Micro Computer shares were down nearly 30% in early trading Wednesday at $35.71, although after Wednesday's losses, they have gained about a quarter of their value since the start of the year.