Tuesday, January 1st 2019
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
I fail to see how an increase of sales with no additional R&D required "hurt" anyone. If it did why did amd see an upturn in stock and nvidia a down? Amd was credited by many with only being good for mining, so when that market tanked if the argument is mining hurt they should have gone out of business.
Nvidia entered the game late. They offered a product that worked well, but hit well after the bubble. That's on them, that's not minings fault.
it would gain them immense amount of market share and AMD is so slow to the punchline, even when AMD does arrive the 1160 prob still beats it, but this isn't about profit - this is about taking that 70-80% market share they have and turning it into 90% that secures their future. -I am an aggressive little beast though, so I am glad Nvidia is greedy and not doing this, because AMD 7nm gpu will come out swinging, and I fully expect Nvidia to lose market share, which is going to be good for everyone, just as with Intel losing market share - comeptition is key to everything
However, nGreedia inflating their prices and profit margins must go a long way into helping Jensen sleep in a new shiny leather jacket every night, so he surely doesn't care. Hi Taylor! And, erm, what? Yeah, AMD lost it under Raja. He focussed on things that were not important to AMD's customers at the time.
I certainly miss the days of an eight or twelve legged horse race. This one horse business is just awful. I doubt it will ever be better, even with Raja's continuing BS-flavoured hype being shouted from Intel.
Things look a little different in mobile, but we’re seeing the same thing play out where the big IP holders have a significant advantage. What remains to be seen is what Apple plans to do with their own architecture.
Anyway, in short, I don't think Nvidia is the most company under the Sun, but they did benefit from the lull in AMD's business.
LMMFAO!!! LMMFAO, & ROFD
me too, the (evga gtx 1080 hybrid gaming 8gb) i bought from newegg new in 2016/2017, 6-7 months after release ($549.99 ON NEWEGG SHELL SHOCKER DEAL BACK THEN) but now,...
my same evga gtx 1080 GPU BUT. (non hybrid version with same blower style cooler) not a hybrid gaming 8gb, .... :(
but still same gpu "gtx 1080" costs $200-$300 more than what i paid A year or two ago, at like $850-$900 wtf nvidia????
and it wasnt even the same evga hybrid 8gb i had, it was an evga air cooled gtx 1080 8gb with slower base and boost clocks 1600 to 1733 or something, my hybrid clocks up to 2012mhz on its own, no overclocking at all, $549.99 on newegg e-mail blast or shell shocker deal, now i can only get an evga 1080 thats got the same blower cooler reference style as my evga 1080 hybrid but without the hybrid water cooling and a steeper price of 899.. its like WTF???? the mining crsze is OVER NVIDIA, LOWER UR FUCKING PRICES ALREADY FUCK ME, OR NO, YOu GO FUCK YOUR SELF HUNG SANG Piece of shit
im done with radeon & grforce, ill see what intel does, tho may suck too, amd needs to get their head out of their asses
Anyways, high prices is one thing, but getting sued by investors cause everyone bet the farm on a very wobbly crypto bubble is another.