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

Wait till court...

[tjstork]

Let's see, a securities case or class action lawsuit where the plaintiffs claim that the defendant deliberately did something evil.

Ho hum?

This is news?

9 out of 10 of these cases just quietly die after an initial round of discovery proves that the plaintiffs, indeed, have no case.