Saturday, May 16th 2009
NVIDIA Falls out With Insurance Company Over Faulty GPU Fiasco Claims
Graphics giant NVIDIA found itself in trouble last year, with the infamous mGPU failure fiasco, that ended up costing the company around $200m over replacement of faulty GeForce mGPUs. The company then assured investors that the money spent on handling the situation would be covered by insurance claims. Now, the insurance provider, National Union Fire Insurance Company (NFUI) of Pittsburgh filed a case against NVIDIA at a California district court, leaving it to decide upon insurance coverage.
The filing reads "Concurrently with, or prior to, placing National Union on notice of the chip claims, NVIDIA has engaged in settlement negotiations with the chip claimants and, on information and belief, has agreed to settlements and/or the material terms of settlements with respect to some or all of the chip claims." The company complains that NVIDIA did not permit NFUI to participate in any of the settlement negotiations with the clients NVIDIA sold the faulty GPUs to. Instead of sharing data relating to the actual settlement negotiations, NVIDIA allegedly "flooded" NFUI with technical data the insurer could make little or no sense of, what it takes as an evasive move to cloak the actual dealings. "[NVIDIA]cloaked its refusals to provide information under the guise of preserving commercial relationships with the chip claimants." In short, the insurer doesn't want to pay up, and wants the court to decide upon the matter.
Source:
TG Daily
The filing reads "Concurrently with, or prior to, placing National Union on notice of the chip claims, NVIDIA has engaged in settlement negotiations with the chip claimants and, on information and belief, has agreed to settlements and/or the material terms of settlements with respect to some or all of the chip claims." The company complains that NVIDIA did not permit NFUI to participate in any of the settlement negotiations with the clients NVIDIA sold the faulty GPUs to. Instead of sharing data relating to the actual settlement negotiations, NVIDIA allegedly "flooded" NFUI with technical data the insurer could make little or no sense of, what it takes as an evasive move to cloak the actual dealings. "[NVIDIA]cloaked its refusals to provide information under the guise of preserving commercial relationships with the chip claimants." In short, the insurer doesn't want to pay up, and wants the court to decide upon the matter.
15 Comments on NVIDIA Falls out With Insurance Company Over Faulty GPU Fiasco Claims
Had NFUI participated in any negotiations, they would probably have been as dumbfounded as they were when they saw the details of the mGPU failures...
This is why most people don't trust mechanics, because they have no clue what they're even doing that costs them $150.
Hasn't nvidia lost enough money already?
And why is the "National Union Fire Insurance Company of Pittsburgh, PA" headquartered in New York?
If your insurer is going to bail you out why would you keep them in the dark and feed them bullshit unless you are up to dodgy business.?
Remember, any payout hits their "profit". Every insurance company is motivated to not pay, or delay, and payout.
nvidia sold gpu's THEY KNEW WERE FAULTY, thats insurance fraud in my book
It's my humble opinion that insurance is nothing more than legalized extortion, but hey, what do I know. ;)
Insurance Company: You should have talked to us first.
NVIDIA: Oh well, it done now... pay up
Insurance Company: We no like pay up... need proof
NVIDIA: (*^%*^%&%&^*^%&^&^*&(&(&^&$^#%$#^%^%&*^%&%$^&%$ (technical gibberish)
Insurance Company: ??WTF??
NVIDIA: Pay up
Insurance Company: We confused... court system please help
Court System: Sigh
NVIDIA: Sigh
Insurance Company: please dont make us pay please dont make us pay please dont make us pay please dont make us pay crossed fingers crossed fingeres crossed fingers
no nvidia is fine, amd seems to be recovering also but the verdict is still out on them.