Super Micro Whistleblower Pushes Forward with Claims of Retaliation Over Accounting Allegations

Super Micro Whistleblower Pushes Forward with Claims of Retaliation Over Accounting Allegations

Bob K. Luong, a former strategy director at Super Micro Computer, has intensified his allegations that the $20 billion hardware giant retaliated against him for raising concerns about questionable accounting practices and potential Securities and Exchange Commission (SEC) violations. Luong claims that his complaints ultimately led to his dismissal in April 2023.

Luong's legal team filed a motion on Tuesday seeking to lift a previous stay, aiming to submit an amended whistleblower complaint against Super Micro and its CEO, Charles Liang, in federal court. 

The allegations center on accusations that Super Micro prematurely recognized millions in revenue before delivering products to customers and intentionally shipped incomplete equipment to bolster financial results.

Additionally, Luong alleges that CEO Charles Liang's wife, Sara Liu Liang—who co-founded Super Micro—and her brother, Edmond Liu, coordinated with Compuware CEO Bill Liang (Charles Liang’s brother) to manipulate payment terms and delay transactions, enabling early revenue recognition. Compuware, a key distributor for Super Micro in Taiwan, China, and Australia, also handles outsourced power design and manufacturing for the company.

Luong's whistleblower claims date back several years, with repeated efforts to prompt an internal investigation into Super Micro’s accounting practices and employee conduct. After filing a formal internal complaint in March 2022, Luong alleges he was ignored, placed on unpaid leave, and eventually terminated.

Super Micro has categorically denied Luong’s accusations, asserting that his dismissal stemmed from unrelated performance and behavioral issues. According to court documents, the company claims it received complaints in July 2022 alleging that Luong bullied two of his direct reports, including instances of yelling, cursing, and rude behavior. Super Micro stated that Luong refused to cooperate with its investigation, leading to his administrative leave and subsequent firing.

Luong’s attorney, Tanya Gomerman, refuted the company’s allegations, describing them as a cover-up for retaliation. She argued that Luong requested the presence of the chief financial officer during his interview regarding the bullying complaints, a request that was denied. 

"They’ve portrayed Bob as a difficult manager who refused to comply, but he believed the actions they wanted him to take were illegal," Gomerman said.

Super Micro has declined to comment further on the case. The amended whistleblower complaint, if approved, could bring greater scrutiny to the company’s financial practices and internal governance