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Nvidia met with lawsuits after class competition after cryptocurrency crash



In short: Nvidia claimed that they were masters of the crypto GPU market, and that any decline in demand would not harm its business. It did and their share is down to 50%, which means many investors are not happy. They face many class action cases over their statements.

As anyone who tried to build a computer during the cryptocurrency mining boom knows, GPU prices often follow trends in crypto markets. When the Bitcoin prices were up, the GPU prices were skyrocketed and the cards were hard to come by. This allowed some investors to worry about what would happen when prices and demand fell again.

Under the boom, Nvidia issued a statement saying they were "masters of managing" the market, and that any decline in cryptographic demand would not adversely affect its business. But when the crypto demand went away, it affected the business and investors are not happy. Nvidia was left with massive over-consumption and the market was flooded with used cards. Nvidia's share is now down more than 50%, and it's still plummeting.

The Schall Law Firm represents many investors in a class action suit. It is alleged that Nvidia made false claims to investors about their ability to maintain demand and resist some drops in the cryptographic market.

The suite is really only meant for serious investors, but since they are looking for those who have lost more than $ 1

00,000 since crashing. They claim:

According to the Complaint, the company made false and misleading statements to the market. NVIDIA speculated the ability to monitor the crypto course market and make rapid changes to the business as needed. The company claimed to be "masters of managing our channel and we understand the channel very well." NVIDIA also claimed to market that any drop in demand for their GPUs among cryptocurrency miners would not adversely affect the company's business due to strong demand for game market GPUs. Based on these facts, the company's public statements were false and significant misleading throughout the class period. When the market learned the truth about NVIDIA, investors were hurt.

It will be difficult to prove exactly how much effect a crypto market had on all of this, since there are many factors other than influencing prices. Trump Administration's commercial war with China, companies like Google, Apple and Amazon are developing their own chips internally, and upcoming Intel and AMD launches.

Although AMD has certainly been hit by the downturn, they have also seen huge growth in the CPU market, which will help compensate for it. However, Nvidia is primarily a graphics card company.

Nvidia is facing at least three other lawsuits on the same basis, so 2019 can be very rough for them.


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