Law Firm Filed a Class Action Lawsuit Against Mining Chip Giant—Nvidia
An American shareholder rights law firm called Shall Law Firm has made it known that it has filed a class action lawsuit against Nvidia a leading graphics card manufacturer, as a result of a recent statement released by the Chip maker, addressing its positive profit outlook despite a declining need for mining chips in the crypto industry.
Shall is Suing Nvidia
A law firm based in Los Angeles has made an announcement that it has filed a class action lawsuit in which it accused Nvidia, of violating 10(a) and 20 (a) of the Securities Exchange Act of 1934 and Rule 10b-5 which was put into effect by the U.S. Securities and Exchange Commission.
Nvidia was charged with the releasing of false and misleading statements to the market claiming that the evident fall in the demand for Graphics Processing Units (GPUs) will not have any negative effect on its overall profit outlook and stock performance, because of the high demand emanating from the gaming sector.
Investors who bought shares from Nvidia between 10th August 2017 and 15th November 2018 have been advised by Shall Law Firm to get across to the firm before 19th February 2019. Particularly investors who encountered losses of over $100,000.
Also, based on a recent statement released by Shall, the GPU producer promoted its ability to oversee the virtual currency market and enact quick changes to its business as essential. It also made some comments which were false to a certain degree over the past six months.
Furthermore, it seems as if Nvidia have been greatly affected by the virtual currency bear trend as it has the worst performing share in the S&P 500 of the 4th quarter of 2018 with a value loss of 54%.
Industry-Wide Drop
Although many chip stocks have experienced low performance as of recent, many have fingered the falling demand for mining hardware as a main cause of the massive poor performance. Presently, the PHLX Semiconductor Sector Index consists of 30 companies which include Nvidia stocks; which dropped by 19%, and Advanced Micro Devices stocks; which dropped by 45%.
In addition, the report of a weaker-than-anticipated quarterly revenue and guidance by Nvidia which showed that the company’s stock has fallen by roughly 19% fueled the news of the recent dumping.
