Super Micro Computer (SMCI.O) stock price sharply declined after The Wall Street Journal reported that the company is under investigation by the Department of Justice due to a short-selling institution's report.

Sources told The Wall Street Journal that the investigation is still in its preliminary stages. The U.S. Attorney's Office in San Francisco has recently contacted individuals who may hold relevant information.

Prosecutors reportedly requested information, seemingly related to a former employee who accused the company of accounting violations and filed a whistleblower lawsuit against the company in April.

Super Micro Computer has not commented on the report.

Last month, short-selling institution Hindenburg Research published a report, claiming to have found obvious accounting red flags, undisclosed related party transaction evidence, as well as sanctions and export control failures, and customer issues. Shortly after, Super Micro Computer stated that it would postpone the filing of its 10-K form due by June 30.

Earlier this month, CEO Charles Liang responded to some price-affecting issues, including what he referred to as a 'misleading' short-selling report.

On Thursday, Super Micro Computer's stock fell by 15%. According to Dow Jones market data, the stock has dropped 53% this quarter, putting it on track to have its worst quarterly performance ever.