Nvidia Getting Sued After Crypto Crash

NEWS

Here’s a fun game: Ask someone you know who invested in the crypto market this year about how their investment is doing. See that expression? It’s not a happy one. It’s about the same expression many investors at Nvidia is making right now. Turns out the crypto crash DID affect them.

Nvidia apparently claimed to their investors that they are “masters at managing” the crypto GPU market. As such, they claimed that a crash in the crypto market will not affect their stock prices. But it did. A lot. In fact, their stock price is down 50% (and still plummeting), and apparently it’s mostly thanks to the crypto crash. Now, investors are claiming that they made false claims and promises to them in their claim that they could withstand drops in the crypto market.

A Class Action lawsuit was filed against Nvidia, and according to the suit:

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.

It will be difficult to prove how much of an affect the crypto market had directly on the stock prices, but that doesn’t matter. Nvidia is off to a rough start. Green fanboys can only hope the rest of 2019 won’t be so shaky for the mainly-GPU manufacturing company.

FORUM DISCUSSION

About Toxxyc

Wynand started his writing career as a Technical Document Writer for a large software company. As time went on he yearned to do a bit more, and started writing descriptions, notices and rules for the Carbonite Forums as he worked his way up to an Administrator of the forums. He went with the flow of things and was pulled into Carbonite News. When not writing, he can normally be found at Carbonite Forums.
Follow by Email
Facebook
Google+
Twitter