Monday, March 8th 2021

NVIDIA Wins $1 Billion Lawsuit by a Class of Investors

by
AleksandarK
 Discuss (40 Comments)
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

#26
Hardcore Games
SoraOh, i see you post your ignorance on more than just the geforce forums :\
Just because you cannot understand Russian is your ignorance
Posted on Reply
#27
ThrashZone
Hi,
Lawsuit was silly anyway nvidia sold branded gaming cards period guess round two will begin soon with 30 series mining profits lol
Posted on Reply
#28
Hardcore Games
ThrashZoneHi,
Lawsuit was silly anyway nvidia sold branded gaming cards period guess round two will begin soon with 30 series mining profits lol
I am sure somebody somewhere will find a legal basis. I cannot find new cards anywhere so change of tact was as good as any.
Posted on Reply
#29
r9
DeathtoGnomesActually 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.
It's called business. They are not selling weapons. I'm not happy either I've been looking to buy new gpu for a while now nvidia or amd don't really care just something to upgrade my 1070.
Posted on Reply
#30
Caring1
ThrashZoneHi,
Lawsuit was silly anyway nvidia sold branded gaming cards period guess round two will begin soon with 30 series mining profits lol
Lack of evidence submitted to prove allegations does not equate to innocence.
Posted on Reply
#31
DrCR
Caring1Lack of evidence submitted to prove allegations does not equate to innocence.
... what other basis would you use to decide a sentence of guilty?
Posted on Reply
#32
Prima.Vera
r9Are you a traveler from another dimension ?! As in my universe NVIDIA has dominated the GPU market since their existence.
You might be too young little padwan, but back in the 90's there was a company called 3DFx who was wiping the floor year by year with nVidia, ATI, Matrox, 3DLabs, Intel, S3, and the rest of "competitors" in the 3D market back then.
Posted on Reply
#33
r9
Prima.VeraYou might be too young little padwan, but back in the 90's there was a company called 3DFx who was wiping the floor year by year with nVidia, ATI, Matrox, 3DLabs, Intel, S3, and the rest of "competitors" in the 3D market back then.
If fact I had one of the Voodoo cards than you need to connect via vga cable to graphic cards as it was graphics accelerator.
Know your history ?! .... FYI NVIDIA showed up and wiped 3DFX out of existence.
Posted on Reply
#34
Prima.Vera
r9If fact I had one of the Voodoo cards than you need to connect via vga cable to graphic cards as it was graphics accelerator.
Know your history ?! .... FYI NVIDIA showed up and wiped 3DFX out of existence.
Only after years later. You forgot the NV1 and NV2 GPUs which were a complete joke. The "true" 3D Cards were Riva 128, and then TNT and TNT 2, but even those were outmatched by the Voodoo2 and 3.... And then 3Dfx self destructed from inside... but that's another story on how NOT TO run a profitable business....
Posted on Reply
#35
A Computer Guy
Prima.VeraOnly after years later. You forgot the NV1 and NV2 GPUs which were a complete joke. The "true" 3D Cards were Riva 128, and then TNT and TNT 2, but even those were outmatched by the Voodoo2 and 3.... And then 3Dfx self destructed from inside... but that's another story on how NOT TO run a profitable business....
1998, Graphics Blaster TNT & Half-Life...ahh the gaming memories.
Posted on Reply
#36
R-T-B
Caring1Lack of evidence submitted to prove allegations does not equate to innocence.
Actually, in American court of law, it does.
Hardcore Gameswww.hardcoregames.ca/2021/03/08/rtx-3070-with-16gb-mod/

NVIDIA is also nerfing VRAM
Yeah, using resistors to signal configuration data to the board is not really an unusual practice (pretty sure AMD does the same), nor is it "nerfing" anything.
Posted on Reply
#37
Caring1
R-T-BActually, in American court of law, it does.
Pretty sure a verdict of Not Guilty is not the same as being innocent.
Posted on Reply
#38
r9
Prima.VeraOnly after years later. You forgot the NV1 and NV2 GPUs which were a complete joke. The "true" 3D Cards were Riva 128, and then TNT and TNT 2, but even those were outmatched by the Voodoo2 and 3.... And then 3Dfx self destructed from inside... but that's another story on how NOT TO run a profitable business....
We can go on with this but the bottom line is they couldn't keep up with nvidia so they closed shop simple as that. They let be beaten in their own game.
Posted on Reply
#39
R-T-B
Caring1Pretty sure a verdict of Not Guilty is not the same as being innocent.
Legally speaking it is. Of course reality is a trickier beast.
Posted on Reply
#40
Vayra86
r9We can go on with this but the bottom line is they couldn't keep up with nvidia so they closed shop simple as that. They let be beaten in their own game.
Much more than being about video card profitability, 3DFX was in fact a battle of APIs and the inevitable chicken/egg questions that arise when marketing a new one.

It is an example of how difficult it is to penetrate an established market, even a young one as it was back then, with a new technology even if it has advantages over existing technology. 3DFX was fighting established investments and interests.

Its very quickly not going to be about 'who has the best thing' but 'who has the deepest pockets and the most powerful friends'.

Unfortunately, good technology and good business don't always align. We see the same thing with current day APIs. We can all smell, see and get frequent proof that Vulkan is a much stronger API for gaming. What do we get? DX12 which is already devolving into commercial bullshit-feature levels that barely get functional hardware out on the market to support it proper, after all, must have new card, must have new OS, and certain GPU cooking companies are keen to shove more advanced feature levels into it depending on the current shareholder's dream.

History repeats.
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