Tuesday, January 1st 2019
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NVIDIA Faces New Class Action Lawsuit Over Cryptocurrency-related GPU Demand Drop
The new year does not seem to bring good tidings alone for NVIDIA, with yet another class action lawsuit promising to keep their legal team busy. When we first posted about NVIDIA stock prices falling 2.1% following the launch of their Turing microarchitecture cards, there was no warning that just a few days after that post things would get worse. Indeed, as of today, the NVIDIA stock price on the NASDAQ stock market has fallen nearly 54% from the 1-year high that was only this past calendar quarter. California-based Schall law firm believes this drop in price can be attributed to more than just the volatile trading that has been ongoing in general in the stock markets, and has decided to file a class action lawsuit against NVIDIA.
Schall Law believes, and we quote, "the Company made false and misleading statements to the market. NVIDIA touted its ability to monitor the cryptocurrency market and make rapid changes to its business as necessary. The Company claimed to be "masters at managing our channel, and we understand the channel very well." NVIDIA also claimed to the market that any drop off in demand for its GPUs amongst cryptocurrency miners would not negatively impact the Company's business because of strong demand for GPUs from the gaming market. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about NVIDIA, investors suffered damages." These are strong words indeed, as oft is the case with the launch of class action lawsuits, and they have put out a press statement to accompany a link for those wanting to join along which can be seen in the source below.
Source:
Schall Law Firm
Schall Law believes, and we quote, "the Company made false and misleading statements to the market. NVIDIA touted its ability to monitor the cryptocurrency market and make rapid changes to its business as necessary. The Company claimed to be "masters at managing our channel, and we understand the channel very well." NVIDIA also claimed to the market that any drop off in demand for its GPUs amongst cryptocurrency miners would not negatively impact the Company's business because of strong demand for GPUs from the gaming market. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about NVIDIA, investors suffered damages." These are strong words indeed, as oft is the case with the launch of class action lawsuits, and they have put out a press statement to accompany a link for those wanting to join along which can be seen in the source below.
98 Comments on NVIDIA Faces New Class Action Lawsuit Over Cryptocurrency-related GPU Demand Drop
Crypto should be taxed and regulated anyway.
Edit: Gaming is far from the only market.
I literally clarified before that I meant in the grand scheme of things. Also, GPUs are no longer primarily gaming devices. If you want a citation just look at why AMD isn't competing on the high-end. Hint: it isn't because they can't.
Here is some data for you. One farm has 1.3 PetaHashes. A 580 or 1070 does about 30 mega hashes. Do the math and tell me how many cards that is. Let's be careless and assume that they were using 580s or 1070s and they were mining Ether. Now after you have done that, tell me how many small miners buying 4 cards it takes to equal that. Awesome!
Edit: added mining to the last sentence.
Edit: spelling.
Personally I'd be fine with 2. It's the stock market looking for someone to blame. Kinda the same type though...
As for the actual topic at hand, that is, nVidia being sued for a drop in stock... I mean, I've shit on nVidia quite a few times on the forums for this and that, but this, I think is a bit ridiculous. I would hope that nobody with half a mind was actually relying on that bubble. I went and got two cards, on credit even, when mining profits were really good... but I knew full well it could implode on itself at any time. You've gotta be something special to get all up in arms when your risky investment blows up all over the launch pad. Surely the guys responsible for moving that kind of money knew this was possible... right? I would be inclined to believe nVidia's stock tanked because there was a boom in demand, from miners, and that demand dropped just like the crypto market dropped. That isn't nVidia's fault. Everyone was pissed at them before when they couldn't keep anything in stock, and now investors are pissed because the stock has dropped. nVidia can't win for nothing right now.