The Schall Law Firm is trying to claim that Nvidia mislead shareholders by overstating its ability to weather the crumbling of the cryptocurrency market, as it pertains to mining with GPUs.
The lawyers said that the company, which has the same name as a Roman vengeance daemon, 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 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, the complaint states.
"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", the complaint continues.
For those who came in late, cryptocurrency mining bolstered the demand for GPUs for much of last year. Both AMD and Nvidia cashed in even though gamers suffered for a period due to a shortage of graphics cards and inflated prices.
The potential class-action suit said that the decline in Nvidia’s share price after the cryptocurrency bubble burst was the Green Goblin’s fault. Nvidia stopped becoming profitable to mine cryptocurrencies like Ethereum using GPUs towards the end of 2018.
Nvidia’s share price has seen a precipitous drop over the past few months. The company is currently trading at $133.50, which is down from over $200 in mid-November, and much lower than its high of nearly $300 in early October.
the Schall Law Firm is inviting shareholders who purchased shares in NVIDIA between August 10, 2017, and November 15, 2018, to contact the firm before February 19, 2019, to participate in the lawsuit and "recover your losses".