Nvidia Targeted With Class Action Lawsuits Over Crypto Crash @ Toms Hardware
I caught this posted over at Toms. Have to admit I'm surprised it too investors this long before taking action.
On a related note the topic of NVIDIA and their "stumble" was covered on the Hardware Asylum Podcast main show Episode 94 and I might suggest you check it out.
According to the Complaint, 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.
While I totally agree I'm not sure what anyone is expecting to get from this. Investing is a risk, one day you could have your money safely stored in stock the next day a fire could destroy the entire factory along with the design archives. It could be from mismanagement of fire suppressors or some angry employee who lost his red stapler. .
While the article suggests that the inventory excess has been "worked through" by now that really doesn't mean much. From the side of NVIDIA they would be indicating that the chips have been sold. However, that doesn't help the excess inventory in the market or the snobby owners who are still upset that they paid over a grand for their card that has virtually $0 value now.
Related Web URL: https://www.tomshardware.com/news/nvidia-class-act...
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