SAN DIEGO & SANTA CLARA, Calif.--(BUSINESS WIRE)--
Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Nvidia Corporation (NVDA) filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between August 10, 2017 and November 15, 2018. Nvidia designs, develops, and markets graphics processing units ("GPUs") and related software.
View this information on the law firm's Shareholder Rights Blog:
Nvidia Accused of Touting its Revenue Guidance
According to the complaint, demand for Nvidia's GPUs initially surged as they became widely used in connection with cryptocurrencies. Nvidia assured investors that the company could adjust to rapid changes in the cryptocurrency market and that its executives are "masters at managing our channel, and we understand the channel very well." Nvidia further assured investors that its core business was computer gamers who would compensate for any decline in demand from cryptocurrency users. When analysts upgraded Nvidia stock based on these representations, insiders sold significant amounts of personally held shares. In one instance, the company's CEO sold 110,000 shares for $18 million in proceeds. When the company cut its revenue guidance on November 15, 2018 – stating it would decline by over 7% instead of growing by 17% as previously expected – its stock declined $57.69, or almost 29%, over two trading sessions, wiping out over $35 billion in shareholder value.
Nvidia Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.