Latest Nvidia lawsuit now seeks that the company should cover for the damages it caused to their shareholders, by allegedly misrepresenting its source of income to be from gaming hardware sales. The fund involved in the case amounts to a billion US dollars, according to the report. The lawsuit reads:
Defendants refused to publicly acknowledge that NVIDIA’s proliferating sales were the result of fickle cryptocurrency miners, lest investors discount the Company’s stock to reflect the volatility of crypto-related demand.
Nvidia lawsuit claims it under-reported sales
Nvidia is a United States technology company that specializes in computer chip making and the design of graphics processing units for the gaming and other professional markets. The brand for its graphics processing units is generally referred to as GeForce.
Lately, the shareholders filed a court case against the company. In the Nvidia lawsuit, a group of disgruntled investors had accused the technology company of not being transparent enough in the sales report of the graphics processing units it manufactured.
Plaintiffs: From miners, not gamers
The Nvidia lawsuit explicitly accused the company of trying to misrepresent that the sales of its graphics processing units, which was worth about $1 billion, was declared as gaming hardware. In contrast, it was utilized for digital currency mining purposes.
Meanwhile, the shareholders also mentioned that the surge in the sales of GeForce GPU to $1 billion was spurred by the boom in the digital currency mining Industry. The accused Jensen Huang, the company’s CEO, and other executives in the Nvidia lawsuit, claiming that they knew about the development.
In the latest development with the case, the disgruntled shareholders are now looking forward to the company covering the damages which resulted from the misrepresentation. They claimed that by misreporting its source of income, the company was violating the United States Exchange Act.