Shares fell 30 per cent after the accounting firm cited concerns about the company's financial practices, stating:

"We are resigning due to information that has recently come to our attention, which has led us to no longer be able to rely on management's and the Audit Committee's representations."

The resignation comes amid the ongoing controversy surrounding Supermicro, which has yet to file its 10-K annual report and now faces the possibility of being delisted from the Nasdaq. The company is also under scrutiny from the US Justice Department, which has begun gathering evidence to support a case against it.

Ernst & Young's decision to resign was influenced by concerns about the governance, transparency, and completeness of Supermicro's financial reporting. The firm had previously raised issues with management and urged the formation of a special committee to investigate internal controls.

Despite these efforts, Ernst & Young remained unconvinced of the company's commitment to integrity and ethical values.

Supermicro's CEO, Charles Liang, has been accused of exerting undue influence over the board, further complicating the company's efforts to restore investor confidence.

The company has stated that it disagrees with Ernst & Young’s reasons for resigning but will take the concerns seriously and consider any recommendations from the special committee.

The ongoing whistleblower lawsuit and allegations of accounting manipulation by activist short-seller Hindenburg Research have only added to the turmoil. Supermicro is now looking for a new accounting firm to replace Ernst & Young, but its reputation and stock price may already be damaged.