Nvidia Has Been Sued For ‘False Statements’
A class action lawsuit has been filed against Nvidia by the Schall Law Firm. The tech giant is accused of making deceptive statements about how it can help to ease the effects of the reduced demand from the cryptocurrency market.
A few months ago, Nvidia’s CEO Jensen Huang said that Blockchain would be there for a long time and ‘cryptocurrencies give his company an extra credit’. As it turned out, this ‘credit’ thing can backfire on the firm.
False statements can be expensive
Schall Law Firm specializes in stock frauds, shareholder rights litigation and securities-related class action cases. Now, the Los Angeles-based company has filed a lawsuit against the technology mogul.
According to the press release on the law firm’s website:
“The Schall Law Firm, announces the filing of a class action lawsuit against NVIDIA Corporation (NASDAQ: NVDA) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.”
According to the lawsuit, Nvidia made false statements about the correlation between the tech company and market demand for its GPUs (Graphic Processing Units). Nvidia claimed that any drop-off in demand of GPUs among cryptocurrency miners would not impact the company’s business. Schall Law Firm is convinced that these statements were false and misleading and it will try to prove this in court.
According to the press release, the case has not yet been certified. The law firm also encourages “investors who purchased the Company’s shares between August 10, 2017, and November 15, 2018, inclusive (the ”Class Period”), to contact the firm before February 19, 2019.
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