SAN FRANCISCO--(BUSINESS WIRE)--
The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of NVIDIA Corporation (“NVIDIA” or the “Company”) (NVDA) between August 10, 2017 and November 15, 2018, inclusive (the “Class Period”).
If you purchased or otherwise acquired NVIDIA securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than February 19, 2019. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions.
NVIDIA investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the NVIDIA Securities Class Litigation
NVIDIA, incorporated in Delaware and headquartered in Santa Clara, California, primarily designs graphics processing units (“GPUs”) for use in computers and video gaming systems. In recent years, NVIDIA’s GPUs have also been used by cryptocurrency “miners,” since certain cryptocurrencies can be acquired by running fast calculations on a GPU. In general terms, cryptocurrency mining is the complex process in which GPUs or other computer chips solve a complicated math puzzle to earn virtual currency.
The actions allege that, throughout the Class Period, NVIDIA and certain of its senior executives made materially false and misleading statements regarding the Company’s business and its ability to react to fluctuations in demand for GPUs. Specifically, defendants falsely assured investors of their ability to see into their inventory channel and react to the volatility of cryptocurrency markets. Furthermore, after cryptocurrency miners’ demand for GPUs fell, NVIDIA continued to push GPU stock into the channel, causing a foreseeable oversupply of inventory. NVIDIA also reassured investors about its ability to manage inventory and adapt to the volatility of the cryptocurrency market. These statements concealed the magnitude of the inventory problem and the impact declining cryptocurrency-based demand would have on the Company’s growth.
The truth was partially revealed on August 16, 2018, as NVIDIA lowered its revenue guidance for the third quarter of 2018 and reported that it no longer expected a meaningful contribution from cryptocurrency miners. The Company also reported a 30% increase in existing GPU inventory compared to the prior quarter. In response, NVIDIA’s common stock price fell by $12.62, or 4.9%, to close at $244.82 on August 17, 2018.
On November 15, 2018, it was further revealed that when NVIDIA cut its revenue guidance for the fiscal fourth quarter from 17% growth to 7% decline. The Company attributed the results to increased inventory of GPUs that had built up before the decline in cryptocurrency-related demand. On this news, NVIDIA’s stock price declined by $57.69, or 28.5% over the next two trading days to close at $144.70 on November 19, 2018, eliminating more than $35 billion in shareholder value.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In late 2016, Benchmark Litigation named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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