NVIDIA Faces New Class Action Lawsuit Over Cryptocurrency-related GPU Demand Drop

[VSG]

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.



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[dorsetknob]

"Its the Gamers Fault they failed to buy Nvidia's Overpriced ex mining stock for gaming when the Market crashed"

 

[blobster21]

When the market learned the truth about NVIDIA

"The market" are a bunch of fools and deserves this backlash.

 

[Renald]

You can blame nvidia for many thing, but not for that. It took everybody by surprise in like 2 weeks time.
Stock and then no stock.

 

[Space Lynx]

You can blame nvidia for many thing, but not for that. It took everybody by surprise in like 2 weeks time.
Stock and then no stock.

This is why companies scale production cautiously, not at full blast, especially for something based on a volatile currency. it is Nvidia's fault for going all in and ramping 10 series production to max levels trying to cash in on the boom. - slow and steady is the name of the game for a long term successful company, Nvidias reputation is damaged in the wall street circles now

 

[Totally]

You can blame nvidia for many thing, but not for that. It took everybody by surprise in like 2 weeks time.
Stock and then no stock.

That's a reaction to Nvidia fumbling things, and that reaction is not what they are suing about but the events leading up to that. To paraphrase, Nvidia assured the investors that the somehow can keep the bubble from bursting and everything was completely in their control in order to keep investors from getting out when they wanted. Now that the bubble has popped they feel like they have been lied to and are now suing. My two cents on this is only I see Nvidia getting out of this is proving that the collapse of the stock price had nothing to do with the downturn of crpyto, glut of inventory, and lackluster sales of new cards because of high prices.

 

[the54thvoid]

Another cash grab by lawyers who reap the most from any winning claim.

And another symptom of the 'self-entitled, loss averse' greed mongers on the stock market. If there's something greedier than NVDA, it's the opportunist investors who want a free ride.

Edit: before someone says NVDA mislead them, how many hobbyists on TPU have said the crypto bubble would burst? How many of us would have gambled in buying NVDA shares as they were already on their sky high trajectory? Shark lawyers stroking the bellies of idiot investors.

 

[Renald]

That's a reaction to Nvidia fumbling things, and that reaction is not what they are suing about but the events leading up to that. To paraphrase, Nvidia assured the investors that the somehow can keep the bubble from bursting and everything was completely in their control in order to keep investors from getting out when they wanted. Now that the bubble has popped they feel like they have been lied to and are now suing. My two cents on this is only I see Nvidia getting out of this is proving that the collapse of the stock price had nothing to do with the downturn of crpyto, glut of inventory, and lackluster sales of new cards because of high prices.

It's a lawyer/business problem, not a customer one.
That's all I mean.

 

[lexluthermiester]

how many hobbyists on TPU have said the crypto bubble would burst?

Not sure I'd call myself a hobbist, but that was what one suggestion I made.

 

[Xaled]

This is drop in a sea, all nvidia's quarter reports were false in last year. Contribution of mining were much more and losses in last 2 quarters were much much more. And Goldman and Sacks should be sued as well for accepting bribe from nvidia and making fake/false optimstic reports about nvidia just before the Q3 results that are actually much worse than what were stated

 

[mtcn77]

This is drop in a sea, all nvidia's quarter reports were false in last year. Contribution of mining were much more and losses in last 2 quarters were much much more. And Goldman and Sacks should be sued as well for accepting bribe from nvidia and making fake/false optimstic reports about nvidia just before the Q3 results that are actually much worse than what were stated

Amen brother!

During this time, Nvidia has also been controlling their opposition with 'positive journalism only' policies. Hardware.fr closed, [H] has been blacklisted for newsmaking AND Hardware.info has shut down their international editions.

 

[TheOne]

Whatever did happen with Intel?

 

[R-T-B]

This is drop in a sea, all nvidia's quarter reports were false in last year. Contribution of mining were much more and losses in last 2 quarters were much much more. And Goldman and Sacks should be sued as well for accepting bribe from nvidia and making fake/false optimstic reports about nvidia just before the Q3 results that are actually much worse than what were stated

[Citation Needed]

 

[mtcn77]

[Citation Needed]

Rlly, won't take the word of an ousted journalist over an impeccable brand image?
Wanna see a classic pump&dump?
Sept. 14th:

Spoiler: Bull Market

Nvidia shares are up more than 37% this year, and were climbing more than 2% on Friday morning, Sept. 14. That's after a note from Needham and Co., whose analysts say the chipmaker will continue eat to gain more market share in the inference market, which is a part of Nvidia's data center business. Needham raised its price target from $325 to $350, roughly 25% above the stock's current level.
...
On Thursday, Nvidia shares fell 1.7% as as part of a broader chip sector sell-off. A Goldman Sachs note said that many semiconductor companies are at risk, as chip prices are falling due to oversupply in the market. But Nvidia is erasing those losses Friday with Needham's positively revised forecast.

Nov. 19th:

Spoiler: Bear Market

On Friday, Nvidia faced a slew of analyst downgrades, including Goldman Sachs, which cut the company's price target to $200 a share and removed the company from its conviction list. Analysts at Needham & Co. also lowered their price target to $225 from a previous $350, while BMO Capital reduced its price target to $175 from $225.

 

[Deleted member 158293]

Time for the SEC to also get involved IMO.

 

[mtcn77]

Here's a clue:

Spoiler: Yahoo

"Goldman Sachs are biased and are playing politics with AMD. They admitted they have a dog in the fight with Nvidia and are betting that Nvidia will reach $300 a share,” wrote one Seeking Alpha subscriber June 14 responding to a sell rating from the investment bank. “Which means that Goldman Sachs are purposely trying to devalue AMD to prop up Nvidia.”

 

[R-T-B]

Rlly, won't take the word of an ousted journalist over an impeccable brand image?

Not without a citation no. No self-respecting journalist should.

That said I appreciate the citations... even if they fall short of full validation of your claims.

 

[moproblems99]

I say it all the time and will say it here: Fools and their money are soon parted. Unless there is clear, 100% proof that Nvidia lied - sorry about your luck. If you don't do your own research, things like this happen.

 

[Xzibit]

This is drop in a sea, all nvidia's quarter reports were false in last year. Contribution of mining were much more and losses in last 2 quarters were much much more. And Goldman and Sacks should be sued as well for accepting bribe from nvidia and making fake/false optimstic reports about nvidia just before the Q3 results that are actually much worse than what were stated

This is probably what they are going after (What they said during prior quarter conference calls and during their Q&A sessions). If they are successful is another story

The 2 prior quarter results, the mining contribution was 10% or less. Then this last quarter they over estimated inventory by at least 3 months worth due to mining and they estimated 1 to 2 Quarter to clear it.

That is one large swing of 10% or less

 

[GoldenX]

How much longer will we heard about this cryptocrap? I'm getting tired of it.

 

[rtwjunkie]

These people filing the suit are idiots, and greedy ones at that. In case they haven’t noticed, the entire stock market has downturned, and we are most assuredly in a bear market. Many people have lost a quarter of their retirement funds.

Rather than recognize this situation for what it is, they’ve decided to try to grab what they can from the one stumbling giant in the room they have a stake in. Pitiful. Sad.

 

[eidairaman1]

NV overpromised and failed

 

[R-T-B]

How much longer will we heard about this cryptocrap? I'm getting tired of it.

As long as it affects the tech world? No one made you read this article... you can skip to your topic of choice anytime.

 

[OSdevr]

"Oh no my investments were poor. I want my money back!"

Every time. Message to these guys:
"You played the stock market, you lost, get over it! This is exactly what you signed up for!"

 

[Fluffmeister]

"Oh no my investments were poor. I want my money back!"

Every time. Message to these guys:
"You played the stock market, you lost, get over it! This is exactly what you signed up for!"

The joys of US capitalism, how dare you do wrong! Malfeasance lawsuit incoming.