A class action level lawsuit has been filed against Nvidia, the tech giant which is also a part of the S&P 500 and reported as the worst performing S&P 500 stock of the last quarter of 2018. According to the lawsuit, Nvidia has made false statements about how it can help to reduce the consequences of the decreased demand from the crypto market.
Schall Law Firm, a firm that expert in shareholder rights litigation and securities-related lawsuits has is the firm behind the lawsuit.
How it all started:
At the start of 2018, as the prices of cryptocurrencies were at an all-time high, the demand for mining rigs and GPUs were extremely high and were being sold at high prices. With the increasing demand, companies such as Nvidia and AMD had to increase their production. However, as the cryptocurrency market started to crash, the demand and price for cryptocurrency mining rigs also crashed which led to an oversupply of mining rigs.
Nvidia soon saw a whooping downward trend in the stock market and by December 2018, it was the worst performing stock on the S&P 500. The massive selloff decreased the value of the stock by around 54%.
Nvidia assured investors that they will tackle the effects of the reduced demand for mining rigs by the strong demand in the gaming industry.
According to the lawsuit claim, based on the following points, the public statements of the company were false and misleading although the class period and as the market started to know the truth about the company, investors faced huge losses.
As the lawsuit is not certified yet, the law firm is encouraging Nvidia investors who purchased the stocks between 10th August 2017 to 15th November 2018 to get in touch with them.