Monday, March 8th 2021

NVIDIA Wins $1 Billion Lawsuit by a Class of Investors

Last year, we found out that a group of investors has accused NVIDIA that the company has misled its investors by reporting crypto revenue as gaming revenue numbers and making its gaming revenue seem much bigger than it is. The original lawsuit was filed in 2017 and it demanded that NVIDIA should pay one billion US Dollars to investors shall they be proven right. In 2017, cryptocurrency mining was at the same craze it is today, with people buying every possible card that exists and consumers having a hard time upgrading their PCs. Investors in NVIDIA corporation have believed that in 2017, the company has presented its cryptocurrency earning figures as a part of the gaming figures, thus giving misleading information about the company's success in the gaming market.

Today, we have information that NVIDIA has won this lawsuit. On Tuesday, U.S. District Court Judge Haywood Gilliam has dismissed the case and ruled that investors were unable to provide any significant evidence that the company has used such practices and misled investors. By taking this case off the company, NVIDIA will not be paying one billion USD to the accusing investors and the company continues operations as normal.
Source: Tom's Hardware
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40 Comments on NVIDIA Wins $1 Billion Lawsuit by a Class of Investors

#1
Xaled
Corrupt justice system.
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#2
SLK
Nvidia ROCKS!
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#3
ARF
Nvidia is one of the worst companies that exist. So much incompetence amongst their engineers, now their finance and marketing departments, as well!
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#4
xSneak
Any smart shareholder would have known the crypto craze was driving up demand for their gpus. It seems silly to blame the company for that, how are they supposed to know the intended purpose of each gpu order?
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#5
birdie
ARFNvidia is one of the worst companies that exist. So much incompetence amongst their engineers, now their finance and marketing departments, as well!
Sorry, what?
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#6
yotano211
ARFNvidia is one of the worst companies that exist. So much incompetence amongst their engineers, now their finance and marketing departments, as well!
Of course you would hide your system specs, you must be hiding that Nvidia card from us all.
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#7
Vayra86
ARFNvidia is one of the worst companies that exist. So much incompetence amongst their engineers, now their finance and marketing departments, as well!
Because.... they won a lawsuit not paying off billions to shareholders which would inevitably reduce the budget for them to... make products?
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#8
Relixo
XaledCorrupt justice system.
EXACTLY!!!!
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#9
r9
What bs, they make cards they don't control who buys them or what are being used for.
ARFNvidia is one of the worst companies that exist. So much incompetence amongst their engineers, now their finance and marketing departments, as well!
Are you a traveler from another dimension ?! As in my universe NVIDIA has dominated the GPU market since their existence.
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#10
kapone32
ARFNvidia is one of the worst companies that exist. So much incompetence amongst their engineers, now their finance and marketing departments, as well!
That is not what it is. It is the machiavellian way that NVIDIA operates under the direction of someone. He was already played on TV by Ming the Merciless. Never mistake incompetence for deception.
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#11
TheinsanegamerN
XaledCorrupt justice system.
Yes, the justice system is SO corrupt for requiring evidence to pursue a case :rolleyes:
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#12
DrCR
TheinsanegamerNYes, the justice system is SO corrupt for requiring evidence to pursue a case :rolleyes:
Psh, hate speecher. ;)
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#13
Xaled
TheinsanegamerNYes, the justice system is SO corrupt for requiring evidence to pursue a case :rolleyes:
Why require evidence for something so stupidly obvious?
Nvidia didn't even mention the word "mining" in their last financial report. It says gaming while at least half of the world who has brain (obviously the half you don't belong to) knows it is mining that lead to more sales (by miners) and also to more profit from gamers (because when miners started buying cards prices went up). It is stupidly that sample.
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#14
Vya Domus
Opening the gates to a lot of horseshit that these companies can now put in their financial reports to manipulate investors. Real nice, what can I say.
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#15
A Computer Guy
Was there any actual reporting requirement that NVIDIA report crypto sales vs. gaming sales? Why would an investor care if the the sale was for mining vs gaming and how without a different SKU could they ever expect that number to have been reported accurately anyway?
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#16
ppn
It's self evident that it all goes to mining and clearly the stores are not respecting the 2 per customer rule.
This creates uncertainty. the crash of crypto would hurt the sales of next gen also, as miners start flooding the second hand market. So Nvidia will have to make next get too powerful too quick at too low of a price. GTX 1070 was a good buy. closest to 1070 came out 3 years later as 1660Ti at $100 lower. $33 per year depreciation a great card. This way 2070 received terrible pricing for customers, but somehow good for holders.
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#17
xorbe
nVidia sells things. I don't think they are responsible for investigating what buyers actually do with the gaming cards. It's from their gaming product line. For better or for worse, I don't think nVidia did anything wrong here. Annoying as it is that miners are snapping up a lot of gaming cards.
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#18
Renald
XaledWhy require evidence for something so stupidly obvious?
Nvidia didn't even mention the word "mining" in their last financial report. It says gaming while at least half of the world who has brain (obviously the half you don't belong to) knows it is mining that lead to more sales (by miners) and also to more profit from gamers (because when miners started buying cards prices went up). It is stupidly that sample.
That's kind of the whole point of justice.
Justice is justice, it's not necessarily fair.

But if want to be reassured, even in math the most simple known thing have to be proven. And some are so stupidly easy to figure out that the demonstration of proof is even harder.
Like the one where you only need 4 colors to color a map. It took some time to prove it properly.

In the end I don't care who wins, they are both greedy.
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#19
DeathtoGnomes
r9What bs, they make cards they don't control who buys them or what are being used for.
Actually they can and have done so. If you were a manufacturer and one person walks into your shop and wanted to buy 10% of your newest stock right then and there, would you? Are you going to question who that person is or represents? If you were smart you wouldnt and just make the sale. This is NGreedia we're talking about.
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#20
Fluffmeister
xorbenVidia sells things. I don't think they are responsible for investigating what buyers actually do with the gaming cards. It's from their gaming product line. For better or for worse, I don't think nVidia did anything wrong here. Annoying as it is that miners are snapping up a lot of gaming cards.
Indeed, AMD intend to cash in again on the mining boom despite their cards already being completely non-existent to gamers.
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#21
renz496
XaledWhy require evidence for something so stupidly obvious?
Nvidia didn't even mention the word "mining" in their last financial report. It says gaming while at least half of the world who has brain (obviously the half you don't belong to) knows it is mining that lead to more sales (by miners) and also to more profit from gamers (because when miners started buying cards prices went up). It is stupidly that sample.
this is the case from the second mining boom in 2017/2018. what they report in their Q4 2020 earning will not going to have any effect on this case. are you nvidia investor?
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#22
defaultluser
A Computer GuyWas there any actual reporting requirement that NVIDIA report crypto sales vs. gaming sales? Why would an investor care if the the sale was for mining vs gaming and how without a different SKU could they ever expect that number to have been reported accurately anyway?
I doubt it - felt like a pointless lawsuit from idiots who forgot that Bitcoin has existed for the last decade!

AMD has never made a point of specifically-reporting every time they get rushed (HD 5850, HD 7950, R9 290, Vega 56 - all these parts dissappeared from store shelves at least 6 months after launch)! The only lasting result of this is Nvidia is now locking/splitting their revenue reporting (good for gamers, and also prevents pointless fishing expeditions from entitled investors like this!)
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#23
isvelte
A Computer GuyWas there any actual reporting requirement that NVIDIA report crypto sales vs. gaming sales? Why would an investor care if the the sale was for mining vs gaming and how without a different SKU could they ever expect that number to have been reported accurately anyway?
Yes Jensen said GPU sales was sky high in 2017 because of fortnite and never mentioned mining, so their stocks went up, then crypto crashed and turing came out, you know the rest.
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