A case processing lawsuit has been filed against tech giant Nvidia, with the plaintiffs accusing the company of making misleading statements about how it can help reduce the effects of the reduced demand from the crypto market.
The case was filed by The Schall Law Firm, which specializes in shareholder litigation and securities-related class action case processing. Last year, the crypto course market was for a long time, with prices for mine rigs and PC Graphics Processing Units (GPUs) reaching astronomical levels.
Mine rigs were in demand and were sold at high prices, with everyone from random buyers of rigs to large companies snapping them up. This led to a lack of rigs, so manufacturers such as AMD and Nvidia had nothing but increase their production to meet the increased demand.
But when the crypto market came down, the demand for mine rigs increased and the prices of the hardware dropped. The reduction in demand left manufacturers such as Nvidia with large stocks that collect dust. To clear the rigs, the producers began to flood the market and lowered prices even lower to regain their investment.
With the over-consumption, Nvidia rounded off losses on the stock market, and on December 21, the company was the worst performer at S & P 500, after it experienced a massive sale of the shares which dropped the share price by 54 percent. According to the lawsuit, which was filed on December 24, Nvidia claimed to be "masters of managing its production channel" while stating that they would ensure proper monitoring of activities in the cryptographic market.
Nvidia was also accused of assuring investors that they would absorb the effects of a reduced demand for mining rigs by the cryptographers with the strong demand in the gaming industry.
The claim further states:
"Based on these facts, the company's public statements were false and substantially misleading throughout the class period. When the market learned the truth about NVIDIA, investors were injured."
According to the release, the case is not yet Certified, and potential plaintiff will not be given any representation until this certification is secured. For now, Schall Law Firm is encouraging investors who bought shares from Nvidia between August 10, 2017 and November 15, 2018 to get in touch with them before January 19, 2019.
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