California's high-end graphics processing unit (GPU) manufacturer, Nvidia, was recently blamed for a collective legal action on the losses reported in its statement when low encryption prices decreased GPU demand from miners and for the influence the nature that the extraction of cryptocurrencies had on its business this year. The lawsuit was announced by the law firm, Schall Law, on December 24th.
Schall Law is a legal litigation company based in the United States. According to the lawsuit filed by them, Nvidia violated the Securities Exchange Act of 1934. The law firm also required all those investors who had invested in Nvidia's shares between August 10, 2017 and November 15 of this year, and those who they lost over $ 100,000 after Nvidia's stock prices declined. The deadline given by the law firm to investors to contact them is 19 February next year.
As per complaint document, Nvidia "made false and misleading statements to the market". The document also states that "NVIDIA has publicized its ability to monitor the cryptocurrency market and to make rapid changes to its activities if necessary.The Company claimed to be" masters in managing our channel and we understand the channel very well. " NVIDIA also said that any decline in GPU demand among cryptocurrency miners would not negatively impact the company's business due to the high demand for GPUs from the gaming market.
With regard to the above, he also added that Nvidia's statements "were false and materially misleading throughout the period of the lesson". When the market "learned the truth", he concluded, investors suffered losses.
The share price of Nvidia has been on a downward trend this year due to the sharp decline in demand for GPUs produced by Nvidia within the miners community. This fall in demand ultimately resulted in a decline in sales due to the fact that the company missed third-quarter revenue expectations, set at $ 3.24 billion. Actual revenue was billed at $ 3.18 billion.
This resulted in a negativity for the company's performance and led to the sale of pressure on the stock which brought down its price. According to data from Yahoo Finance, Nvidia's share was trading at $ 133.6 at the time of writing this article, after reaching a maximum of $ 286
The bear market throughout the year in the cryptocurrency ecosystem that has seen the collapse of 90% of most of the highest cryptocurrencies has made the mining of some miners unprofitable and this is the main reason for the decrease in the demand for cryptocurrency GPU related to miners.