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Lawsuit Claims Nvidia Execs Concealed Serious Flaw
snydeq writes "A lawsuit filed in a California court on Tuesday alleges Nvidia concealed the existence of a serious defect in its graphics-chip line for at least eight months 'in a series of false and misleading statements made to the investing public.' The lawsuit contends that Nvidia CEO Jen-Hsun Huang and CFO Marvin Burkett knew as early as November 2007 about a flaw that exists in the packaging used with some of the company's graphics chips that caused them to fail at unusually high rates. Nvidia publicly acknowledged the flaw on July 2, when it announced plans to take a one-time charge of up to $200 million to cover warranty costs related to the problem. That announcement caused Nvidia's stock price to fall by 31 percent to $12.98 and reduced the company's market capitalization by $3 billion, the lawsuit said. The lawsuit seeks class-action status against Nvidia and unspecified damages."
IANAL, but different parties can sue, I think.
Manufacturers of machines can sue for damages to reputation, warranty costs, etc.
Investors can sue for lost of investment, since it wasn't, in any way, a market force that caused the loss of value.
Those who got the chips in machines can sue for damages too, I bet.
Frankly, this whole fiasco just strengthened my love for ATI. Their newer binary blobs are amazing.
Show this to your friends and family that don't know what a real hacker is
You should definitely sign up. They will most likely be providing a $20 coupon to all people who purchased nVidia products between a specified date range. I've heard the lawyers might get a small piece of the settlement too - like 50%.