NVIDIA slapped with class action lawsuit over crypto crash.

[wONKEyeYEs]

I find it hard to work up any sympathy for the wealthy (>$100,000) investors represented in this lawsuit.

Big business and big money are usually lacking in, moral stature, yeah that's the ticket.

 

I just hope that NVIDIA doesn't get mortally wounded as a result.

A monopoly doesn't serve the consumer.

 

Quote

Schall Law Firm is handling the case against NVIDIA, and wants investors who spent over $100,000 to join its class action lawsuit.

The firm said: "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".

2

https://www.tweaktown.com/news/64292/nvidia-slapped-class-action-lawsuit-over-crypto-crash/index.html

 

[Mira Yurizaki]

"We bet on a volatile investment and lost. So we're blaming you."

[SkyHound0202]

"Warning: Trading products such as crypto currency involves substantial risk of loss and may not be suitable for all investors. Trading such products is risky and you may lose all of your invested capital."

[Imbellis]

Unless they signed some contract stating they the stocks won't drop, I don't see what backing they have.

[poochyena]

My 10 nvda shares currently sitting at -22%. Can I get a payout too?

 

I totally get the lawsuit though. Nvidia bet BIG on crypto and ensured everyone that it is sticking around and will help the company. AMD actually understood that the cryto surge was just a bubble and told investors not to look to much into gpu sales due to crypto.

[PlayStation 2]

"I bought 27 GTX 1060s for mining and deserve to be compensated! REEEEEEEEEEEEEEEE"

[Blademaster91]

Wait what, People are blaming Nvidia for the crypto crash? No one really expected the crypto market to completely crash as it was way too unpredictable, if you invested over $100K into such an unstable market that isn't the companies fault.

 

[poochyena]

1 minute ago, Blademaster91 said:

People are blaming Nvidia for the crypto crash?

No, they are blaming them for promising it won't crash. He lead investors to think the sales from crypto were stable.

[keskparane]

7 minutes ago, Blademaster91 said:

Wait what, People are blaming Nvidia for the crypto crash? No one really expected the crypto market to completely crash as it was way too unpredictable, if you invested over $100K into such an unstable market that isn't the companies fault.

 

Speak for yourself. I saw it as a forgone conclusion. A bit like.... well.... ever other hair-brained trading fad.

[SenKa]

I'll be watching this case closely. Im a law student, may bring it up to my prof and see what he has to say.

[Delicieuxz]

It's the same thing as with what happened to Elon Musk after he made public statements that Tesla has secured funding to buy-back Tesla shares and take the company private. A company is responsible to make accurate and good-faith representations of their business performance and expectations to their investors.

 

On 11/8/2018 at 5:13 AM, Delicieuxz said:

Well, a tweet that misled investors putting large amounts of private money at risk and which violated US securities law that's there to protect investors.

 

Musk is still in control of Tesla, and maybe the time away from extra responsibilities will actually be good for him and the company.

 

If Nvidia made over-promising statements to their investors to get them to invest more money into the business, then Nvidia could face consequences for it.

 

Investing being a gambling business is one thing. But a company or person mis-representing their position and knowledge about the market to get more money out of people who end up being screwed over by that mis-representation is another thing. The market can't be predicted and Nvidia isn't responsible to make the market perform a particular way. But, a company is in control of how they represent their business to their investors, and a company mis-representing their known future prospects is not a natural part of the risk of investing and is fraud.

[mr moose]

All NVIDIA said was they were able to move quick enough to be able to avoid damages from changes in crypto mining.  So far it appears that is true.  This is just another law firm trying to cash in on gullible/amateur investors who bought stocks just before a big dip in the market.

[leadeater]

So the entire market is going down, not Nvidia stock or due to the crypto market. Yea I think they are going to lose this one. Wasting more of their money.

 

Edit:

To most of the above comments, this is about Nvidia stock price and investing in the company not crypto currency or trading of it.

[DragonTamer1]

I'm all in favor of Nvidia being brought down a few pegs, but this is just dumb. Anyone could have looked at the stocks and seen that it was way too high to stay there. We all knew crypto was going to crash eventually.

[Lathlaer]

13 minutes ago, leadeater said:

Edit:

To most of the above comments, this is about Nvidia stock price and investing in the company not crypto currency or trading of it.

Exactly.

 

This isn't about people who invested in crypto, it's about people who invested in NVIDIA stock which went down due to high inventory.

 

Basically they are blaming NVIDIA for making too many GPU's.

[imreloadin]

3 hours ago, Mira Yurizaki said:

volatile investment

That's an understatement...

[straight_stewie]

3 hours ago, Imbellis said:

Unless they signed some contract stating they the stocks won't drop, I don't see what backing they have.

Their backing is that they are betting that Nvidia doesn't want to spend the next decade in court fighting a group of many people who apparently have enough money to lose $100,000+ investments and then hire expensive lawyers to complain about it to.

[mr moose]

22 minutes ago, Lathlaer said:

 

NVIDIA stock which went down due to high inventory.

 

It wasn't high inventory that caused the stock price to fall, it was the entire market falling.  If nvidia has an issue at the moment that we can speculate about,  it's that they are slightly more exposed to market than AMD (due to size and having there latest product only just on the market while zen is already established).

[Lathlaer]

1 minute ago, mr moose said:

It wasn't high inventory that caused the stock price to fall, it was the entire market falling.  If nvidia has an issue at the moment that we can speculate about,  it's that they are slightly more exposed to market than AMD (due to size and having there latest product only just on the market while zen is already established).

Fair enough, I wasn't really paying attention recently, the last thing I remember are those articles reporting that they had too high inventory (the ones where CEO explained why this is happening) and that the stock price dropped.

[dgsddfgdfhgs]

any losses nvidia loss will be transferred to its customers......though raising its prices....

 

[Delicieuxz]

1 hour ago, mr moose said:

All NVIDIA said was they were able to move quick enough to be able to avoid damages from changes in crypto mining.  So far it appears that is true.  This is just another law firm trying to cash in on gullible/amateur investors who bought stocks just before a big dip in the market.

The lawsuit alleges that Nvidia claimed that GPU demand from the gaming market was strong enough that any changes in crypto-currency mining habits wouldn't negatively impact overall GPU demand.

 

https://schallfirm.com/cases/nvidia-corporation/

Quote

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.

 

Of course, that's total BS and the only reason why GPUs weren't staying on store shelves and why people were rushing out to buy five $1,300 GPUs at once was to make each of them earn back multiples of their shelf-price through crypto-currency mining.

[mr moose]

9 minutes ago, Lathlaer said:

Fair enough, I wasn't really paying attention recently, the last thing I remember are those articles reporting that they had too high inventory (the ones where CEO explained why this is happening) and that the stock price dropped.

I think the issue with a lot of these situations is that there are too many web magazines and youtube/social media celebrities that are fighting for clicks and views, the end result is we have more generalization, more sensationalism and less education in the more complex parts of tech.  It's fine for Ian cutress, Jay or Linus et al to talk about the technical side of a product, but once they start talking about markets, stock prices and channel stock etc, all it does is confuse people and then we start to draw conclusion on either irrelevant data or moot coincidences.   

 

 

[mr moose]

1 minute ago, Delicieuxz said:

The lawsuit alleges that Nvidia claimed the bulk of the demand for GPUs was from the gaming market, not the crypto-currency market, and that therefore a change in crypto-currency mining habits wouldn't impact GPU demand.

 

https://schallfirm.com/cases/nvidia-corporation/

 

They can allege what ever they want.   Nvidia stock price fell inline with the market, Any difference in severity can more easily be linked to new product reception, being a larger company and not having any CPU market share to buffer the fall.   So unless they have some proof that Nvidia inventory is sufficient to cause any of these issues it's just a bunch of dead beat investors being sucked in by a law firm needing cash. 

[Delicieuxz]

1 minute ago, mr moose said:

They can allege what ever they want.   Nvidia stock price fell inline with the market, Any difference in severity can more easily be linked to new product reception, being a larger company and not having any CPU market share to buffer the fall.   So unless they have some proof that Nvidia inventory is sufficient to cause any of these issues it's just a bunch of dead beat investors being sucked in by a law firm needing cash. 

 

Following Crypto Mining Crash, GPU Producer Nvidia Worst Performer in S&P 500

 

If Nvidia was the worst performer, then they didn't fall in-line with the market. And if "the market" is being defined as just AMD and Nvidia, then the drop for both companies indicates that crypto-currency mining was indeed a big factor in the high share price, which would give evidence that any claim made by Nvidia that the gaming market was the primary source of GPU demand is false.

[Worstcaster]

52 minutes ago, straight_stewie said:

Their backing is that they are betting that Nvidia doesn't want to spend the next decade in court fighting a group of many people who apparently have enough money to lose $100,000+ investments and then hire expensive lawyers to complain about it to.

They probably do not have to pay for the lawyers up front.  Since they get a percentage of the settlement a lot of liability lawyers do not charge unless they win.