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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."
IT WAS SIX DAYS AGO
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.
I work on Wall Street and all of the investors think they are entitled to profits, and that they are guaranteed growth every quarter. The public companies have played into that doing whatever it takes to get their stock to look attractive, and NVIDIA plays this game as ruthlessly as anyone. This is a situation of their own making. The market as a whole is morally bankrupt and needs to be brought under control.