Securities fraud class action litigation has been filed on behalf of investors in the securities of NVIDIA Corporation (“NVIDIA” or the “Company”) (NASDAQ: NVDA). If you purchased or otherwise acquired the securities of NVIDIA between August 10, 2017 and November 15, 2018, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than February 19, 2019.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the actions. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
NVIDIA investors may choose to have Lieff Cabraser review their claim by completing the contact form below. You can also call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358 to discuss the litigation.
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.
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Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
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