Nvidia hit with class action lawsuit over false statements about impact of crypto mining demand

On December 28, according to globenewswire, Levi & Korsinsky law firm issued a shareholder warning, notifying all individuals or entities that purchased or otherwise purchased Nvidia securities between August 10, 2017 and November 15, 2018 that a securities class action lawsuit has been initiated.

During this time, defendants assured investors that they were closely monitoring the cryptocurrency market and therefore could adapt to possible rapid changes. Defendants then touted that the company and its executives were “in control of managing their channel” and “understood the channel very well.”

Furthermore, Nvidia assured investors that the surge in demand for GPUs from cryptocurrency miners would not negatively impact the company due to strong demand from Nvidia’s core customer base, namely computer gamers. These statements were false and misleading.

As a result of these false statements, Nvidia's stock traded at artificially inflated prices during this period.

The law firm said any individual who suffered a loss has until February 19, 2019 to ask the court to appoint them as lead plaintiff.