Hardware manufacturer Nvidia is facing a class action lawsuit in which the plaintiffs accuse the company of making misleading statements in regards to the cryptocurrency market. The case is led by Schall Law Firm, specialized in securities-related class action lawsuits. According to them Nvidia made promises earlier which have mislead investors.
In 2017 and early 2018 graphics cards were in high-demand. Nvidia increased production and the prices of its graphics card. The company made incredible profits. When asked how it would deal with the volatility of the crypto market, the tech company answered it was more than capable.
According to the lawsuit Nvidia claimed to be “masters at managing their production channel”, and the company would also properly monitor the activities in the crypto market.
However, the crypto market collapsed and moved into a bear market. As a result mining is no longer financially profitable, and the sales of graphics card also went down considerably. Now Nvidia is trying to sell its inventory at a reduced price, and the stock value of Nvidia has plummeted with 54%.
The news about the decline in sales is at least good news for gamers. For months it was hard to find the latest graphics card on store shelves. Miners would be the card in batches, multiple at the time. Some companies wouldn’t allow retailers to sell more than two graphics cards to one person, in order to make sure that gamers would still be able to find cards in stores. However, these would still be sold at the highest possible price.
Also published on Medium.