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NVIDIA Slapped With Class Action Lawsuit Tied To Cryptocurrency Implosion (hothardware.com)
Long-time Slashdot reader foxalopex writes:
It looks like Nvidia is going to be hit with a class action for investors who lost big when their stock price crashed more than 50% due to an overstock of GPU cards that were produced for the crypto-currency craze back in 2018.
The suit claims investors were told Nvidia had control of the situation until it crashed worse than even Nvidia had anticipated.
"The Company's public statements were false and materially misleading," argues the complaint from a Los Angeles law firm, seeking investors who purchased shares in NVIDIA between August 10, 2017 and November 15, 2018.
It was on November 15 that NVIDIA issued a statement that "excess channel inventory post the crypto-currency boom...will be corrected." Citing new products for machine learning, film rendering, and cloud computing, they added that "Our market position and growth opportunities are stronger than ever."
"The Company's public statements were false and materially misleading," argues the complaint from a Los Angeles law firm, seeking investors who purchased shares in NVIDIA between August 10, 2017 and November 15, 2018.
It was on November 15 that NVIDIA issued a statement that "excess channel inventory post the crypto-currency boom...will be corrected." Citing new products for machine learning, film rendering, and cloud computing, they added that "Our market position and growth opportunities are stronger than ever."
Investors that have blind faith in company forecasts are getting what they deserve. They are legally obligated to report past and current, but they will always dream of an amazing future. Do your homework before buying stock.
"But they LIED to us when they said they expected things would improve!!" No, optimism is not lying. Thank you for your money, now go home.
I work for the Department of Redundancy Department.
Prices are always sticky to the upside.
Seven puppies were harmed during the making of this post.
100 or so years ago one of the first economic crises of overproduction characterized as such hit Europe.
Instead of selling their farm stock cheap farmers chose to destroy their products. Giving stuff away costs distribution money, destroying them costs less.
I do not believe in karma. "Funny"=-6. Do good and forbid evil. Yours, Oft-Offtopic Flamebaiting Troll.
100 or so years ago one of the first economic crises of overproduction characterized as such hit Europe.
Instead of selling their farm stock cheap farmers chose to destroy their products. Giving stuff away costs distribution money, destroying them costs less.
This is interesting but not the problem here. The thing here is that there is no oversupply of GPU cards. There is only an oversupply of GPUs in the upper end of the supply chain. The mining crash and the desire not to further drop prices on already purchased units by OEMs mean that these aren't being sold. The retail market is sitting quite happily at the RRP and there's no incentive for them to drop.
Farming equivalence: An oversupply of wheat does not mean that there are mountains of bread laying around being sold for bargain prices.
Thank you for your money, now go home.
NVIDIA didn't even get the money. These shares were purchased on the secondary market.