NVIDIA shareholders filed a lawsuit against the company’s management in a California court. They believe that the company deliberately misled them when evaluating the market for gaming video cards.
According to shareholders, NVIDIA wrote off $ 1 billion in GPU sales to increase demand among gamers – this market is more stable and predictable. However, according to shareholders, the cryptocurrency market boom played a significant role in the hype around the company’s products – instead of specialized solutions, miners bought gaming video cards.
The authors of the lawsuit note that executive director Jensen Huang, financial director Colette Kress and senior vice president Jeff Fisher deliberately misled them, saying that reducing the hype around cryptocurrencies will not affect the sales of gaming GPUs. This violation is considered by shareholders as a misrepresentation of the company’s sources of income, which is a violation of the US Securities Law.
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