NVIDIA Faces Lawsuit Over Cryptocurrency-related GPU Demand Drop

[Kenrou]

https://www.techpowerup.com/251095/...t-over-cryptocurrency-related-gpu-demand-drop

"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."

 

[Alaric]

So investing is now supposed to be foolproof??? Greedy people who bought in to a get rich quick scheme didn't get rich quick, so let's sue someone. They don't deserve to have money if they're that stupid. The snowflake generation will be the fall of Western Civilization.

 

[EarthDog]

This is a frivolous lawsuit.

 

[caddi daddi]

and all this time I thought stocks were just another form of c-d that just paid more..........

 

[RockerGuy]

As they say "A fool & his money is easily parted"

 

[Alaric]

This is a frivolous lawsuit.

Exactly, and this is where judges are supposed to toss this nonsense out of court. Unfortunately, our judges are about as useful as our lawyers at this point.

 

[freakdiablo]

So investors fell for essentially marketing...? What's NVidia supposed to say - "yeah we dunno what's going to happen, don't buy our stock".

 

[habbajabba]

It is absolutely impossible to say on one hand our stocks may fall because of X, but because of Y, on the other hand they won't. That's like saying if she stops buying, he'll just pick up the tab for her instead. No worries. The whole article is lame.

 

[mackerel]

I haven't tried looking for the source of the alleged claims from nvidia stated in that lawsuit, but it is easy to look at the investor materials they have to regularly publish and update. In those, I saw nothing out of the ordinary, although I'm far from an expert in the field. In particular, it is littered with disclaimers about "forward looking statements" which is practically a given. No company can accurately predict the future, so as long as nvidia gave information in a correct and good faith manner, they're clear. If it can be shown they gave information that was false or intentionally misleading, that's another story.