Thursday, September 11th 2008

NVIDIA Sued Over Faulty GPUs

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Graphics card manufacturer NVIDIA is being sued for withholding information over defect GPUs and thus causing investors to lose money. NVIDIA shareholder Lisa Miller has filed the suit in the US district, seeking for legal action against NVIDIA. The lawsuit alleges that the company knew of the problem last year, but didn't disclose the issue to shareholders. Earlier this summer NVIDIA by its own admitted that it had a problem with faulty GPUs indeed. In July NVIDIA confirmed that there's a thermal problem with its GPUs. The problem is in the thermal stress caused when the chip powers up and then powers down. The difference in temperature caused the solder attaching the chips to crack and fail. After the issue was made public it led to an immediate stock reaction. The company's share price fell 31% from $18.78 USD to $12.98 for one night, effectively wiping $3 billion off the company's and shareholders' pockets in less than 24 hours. If NVIDIA tries to cover the cost of repairs and returns for the faulty GPUs, it would cost up to $200 million. Because of the obvious losses, the shareholders now want some compensation that needs to be paid by NVIDIA. "The truth is that, at least as early as November 2007, NVIDIA and the other defendants have known about these unprecedented failure rates as well as their 'root causes'," the lawsuit claims. "Nevertheless, for at least eight months, defendants concealed from NVIDIA investors these defects and their obvious impact on the company's financial condition and future business prospects," it adds. Till the moment of this release, there is still no official response from NVIDIA. You can find the full lawsuit in .pdf format here.
Source: PC Pro

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51 Comments on NVIDIA Sued Over Faulty GPUs

#26
btarunr
Editor & Senior Moderator
Done with the cleanup.
Posted on Reply
#27
yogurt_21
lol this whole thing is crazy, so she wanted nvidia to announce to shareholders only that there was a problem? insider trading anyone? so she's suing nvidia for not doing something illegal. wow that's a new one.

nvidia would have had to make an announce ment to aib partners, shareholders, and final end users to avoid getting slapped with an insider trading suit. telling your shareholders only when things happen means they have time to sell at 18$ a share on july 2. and buy at $10.85 a share 2 weeks later. hence illegal.

and I'm with btarunr, she wants nvidia to pay her so that their stocks will go down further?:wtf:

all in all totally crazy.
Posted on Reply
#28
DaedalusHelios
I have seen much worse defects in motherboards and nobody sued Asus, ECS, ad biostar. Its funny DOA is more excused than something breaking down over time. Components wear out eventually, at what point is undurable a defect?
Posted on Reply
#29
_jM
Above all the non-sense .. I personally think its quiet funny that a major (leading) GPU manufacture with all that income and the fact that NVIDIA is the top seller and has been. Is now marketing faulty GPUs. GO ATI =]

Oh and i just purchased 200$ in shares !!! hahahah i love my accountant!
Posted on Reply
#30
btarunr
Editor & Senior Moderator
DaedalusHeliosI have seen much worse defects in motherboards and nobody sued Asus, ECS, ad biostar. Its funny DOA is more excused than something breaking down over time. Components wear out eventually, at what point is undurable a defect?
Do you get a laptop from say Acer that turns out to be DOA? These are branded products that have defective GPUs (in large quantities) and all coming from the same source, NVIDIA.
Posted on Reply
#31
Basard
i love it... people sit on their ass, eatin a cheeseburger, clicking on some stocks, and bam--they have $20,000 profit.... from no work whatsoever, just like playing a game....

but when they find out they made a shitty investment... they start crying and wanna sue... how bout invest elsewhere, or do some actual research before the 4800 series comes out.... hahah...

damn cry-babies. i'd love to see how well they do against nvidias lawyers.
Posted on Reply
#32
DaedalusHelios
btarunrDo you get a laptop from say Acer that turns out to be DOA? These are branded products that have defective GPUs (in large quantities) and all coming from the same source, NVIDIA.
I have only bought one prebuilt system in my life so personal experience says 1 out of 1. Not enough data presented for that one.:laugh:
Posted on Reply
#33
DaedalusHelios
Basardi love it... people sit on their ass, eatin a cheeseburger, clicking on some stocks, and bam--they have $20,000 profit.... from no work whatsoever, just like playing a game....

but when they find out they made a shitty investment... they start crying and wanna sue... how bout invest elsewhere, or do some actual research before the 4800 series comes out.... hahah...

damn cry-babies. i'd love to see how well they do against nvidias lawyers.
AMD's stock is awful right now if thats what you are suggesting buying.

Only tech stock worth it in our field right now is Intel despite lacking advancements at the moment they are still doing very well.
Posted on Reply
#34
PCpraiser100
Personally, I rather challenge NVIDIA to a "yo mama" fight instead of being a whiny bitch with a lawyer lol. They will definitely be screwed there as they only know good graphics card naes like "Yo mama is so stupid that she is dumber than my nForce 100 chipset":p
Posted on Reply
#35
DaedalusHelios
PCpraiser100Personally, I rather challenge NVIDIA to a "yo mama" fight instead of being a whiny bitch with a lawyer lol. They will definitely be screwed there as they only know good graphics card naes like "Yo mama is so stupid that she is dumber than my nForce 100 chipset":p
lol wut?

Its hard to figure out what you are saying..... :confused:
Posted on Reply
#36
jbunch07
DaedalusHelioslol wut?

Its hard to figure out what you are saying..... :confused:
Yeah he left me dumbfounded :confused:
Posted on Reply
#38
PCpraiser100
jbunch07Yeah he left me dumbfounded :confused:
You guys need to get out more lol.
Posted on Reply
#39
FreedomEclipse
~Technological Technocrat~
& here i was thinking of getting a laptop which housed a 8600M GT....

(but i dont want to f**king go back to ATi :shadedshu:twitch::cry:)
Posted on Reply
#40
brian.ca
yogurt_21lol this whole thing is crazy, so she wanted nvidia to announce to shareholders only that there was a problem? insider trading anyone? so she's suing nvidia for not doing something illegal. wow that's a new one.

nvidia would have had to make an announce ment to aib partners, shareholders, and final end users to avoid getting slapped with an insider trading suit. telling your shareholders only when things happen means they have time to sell at 18$ a share on july 2. and buy at $10.85 a share 2 weeks later. hence illegal.
If something doesn't make sense it's usually a good idea to look into it a bit further before coming to any conclusions. From above, ""The truth is that, at least as early as November 2007, NVIDIA and the other defendants have known about these unprecedented failure rates as well as their 'root causes',"" and the first point from the linked pdf;
Plaintiff so alleges individually and on behalf of all persons and entities (the "Class") who purchased or otherwise acquired the common stock of NVIDIA Corp. ("NVIDIA" or the "Company"), between November 8, 2007, and July 2, 2008, inclusive (the "Class Period").
The people included in the suit are those who bought the stock after Nv supposedly found out about the problem but didn't disclose it (up until they disclosed the problem and their estimate of the cost to fix the situation). So there wouldn't actually be any insider trading... I'd assume their beef is Nv sold them that stock supposedly knowing that there was this problem that would be costing them a significant amount, and that in keeping the problem under wraps I'd imagine the contention is probably that Nv decieved them similiar to how a used car salesman might sell someone a car that they know is a lemon with out telling them about the problems for the sake of moving the product at a higher price (in this case, NV stock at $18 rather than $10)
Posted on Reply
#41
eidairaman1
The Exiled Airman
bubba_000ALL chips are affected, since they're basically the same. Laptop GPUs are more affected because they have to go through more temperature variations, and that's what kills nvidia chips.
DaedalusHeliosThe only gpu's I have had die on me were Ati. So the laptop angle only makes since to me.
obviously these 2 are fanboys:laugh:
Posted on Reply
#42
eidairaman1
The Exiled Airman
DaedalusHeliosI have seen much worse defects in motherboards and nobody sued Asus, ECS, ad biostar. Its funny DOA is more excused than something breaking down over time. Components wear out eventually, at what point is undurable a defect?
well about the DOA Issue, Customers wont complain aslong as the company covers it and sends them a Known Working Unit.
Posted on Reply
#43
niko084
Wow....

Wonder if this has anything to do with the over 20 8400/8500's I've rma'd in the last 4 months....

Or the 10 or so notebooks I have rma'd....
Posted on Reply
#44
xfire
Is it safe to buy a laptop with mobile 8200?
Posted on Reply
#45
eidairaman1
The Exiled Airman
i wonder if xfire and btarunr know eachother
Posted on Reply
#46
ktr
xfireIs it safe to buy a laptop with mobile 8200?
From what I have been fixing, it was mostly affecting the 6150 IGP.
Posted on Reply
#47
xfire
HAs Nvida put up a list anywhere about the ones affected? Are the new ones still having the problem?
@eidairaman1 we don't know each other in person.
Posted on Reply
#48
btarunr
Editor & Senior Moderator
xfireHAs Nvida put up a list anywhere about the ones affected? Are the new ones still having the problem?
@eidairaman1 we don't know each other in person.
Because we studied in rival schools :)
Posted on Reply
#49
xfire
extermely rival and close by schools. Its like suicide walking into his school.
Posted on Reply
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