Nvidia, the multinational chip-making giant, remains being sued by disgruntled investors for allegedly under-reporting its sales of hardware wont to mine cryptocurrency.
According to The Register, the pc processing giant stands accused by a gaggle of shareholders of attempting to pass off the sales of the maximum amount as $1 billion in graphics processing units (GPUs) used for cryptocurrency mining as gaming hardware.
The shareholder class suit accuses CEO Jensen Huang, CFO Collette Kress and Jeff Fisher, senior vice chairman and head of gaming, claiming they knew the spike in GeForce GPU sales was associated with the crypto mining boom and will not be sustained over the future .
The lawsuit dates back to the peak of the crypto fervor in 2017, but an amended suit was filed in California last week (see below).
The joint plaintiffs claim the “defendants opted for a technique that might maximize miners’ fervent demand for GeForce GPUs while falsely telling investors that the spike in GeForce sales came from gamers, not miners.” They then allege the corporate made it appear its revenue was sheltered from the ups and downs of the cryptocurrency markets.
“Defendants refused to publicly acknowledge that NVIDIA’s proliferating sales were the results of fickle cryptocurrency miners, lest investors discount the Company’s stock to reflect the volatility of crypto-related demand,” the filing states.
In 2018, Nvidia’s share price plummeted 20 percent after demand tapered from the mining craze the year before. As cryptocurrency prices dropped significantly, so, too, did miner profits, forcing many operations to shut down.
Via an attempt by jury, the shareholders now seek damages from the corporate and its executives for what they claim may be a violation of U.S. Exchange Act for misrepresenting where Nvidia’s revenues were coming from.