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."

Comments

Re:Curious to see where this one goes...

[vonPoonBurGer]

So odds are high that this card is going to die early too.

Did you buy a card with a lifetime warranty? Both EVGA and XFX offer lifetime warranties on 8800GTs. Personally, I won't buy RAM or video cards from a company that doesn't offer a lifetime warranty, as there are more than enough manufacturers for both products offering these warranties. My current 8800GT is an EVGA, and it's nice knowing they're on the hook for this flaw if it happens to strike me. The card manufacturer has probably spent millions on Nvidia silicon, so they have clout to extract some compensation from Nvidia, whereas I do not.

Re:Seriously, what is the issue with Nvidia chips?

[Sj0]

An actual microchip is absolutely miniscule. The ceramic(or plastic, or meta) that holds it and contains the pins that get soldered to the board is called packaging.