The manufacturer of graphics processing units (GPUs) Nvidia is facing a collective legal action on losses reported by the company when the lower prices of the encryption have reduced the demand for GPU from miners. The law firm Schall announced the lawsuit on December 24th.
The complaint states that "the Company has issued false and misleading statements to the market". In particular, according to the announcement, Nvidia "has publicized its ability to monitor the cryptocurrency market and to quickly make changes to its activities". He declares that the GPU the producer has also declared:
"The interruption of the GPU request among cryptocurrency miners would not negatively affect the company's business due to the high demand for GPUs from the gaming market".
As Cointelegraph recently reported, after the collapse of cryptocurrency mining, Nvidia was the worst performer reported in the S & P 500. After a massive sell-off of its shares, the share price of the company fell 54%.
In mid-November, an analysis of Susquehanna – a global commercial and technology company based in the United States – noted that the extraction of Ethereum (ETH) using graphics processing units was no longer profitable.
In Susquehanna's analysis, the monthly profit for the GPU Ethereum miners hit $ 0 by November 1, falling from almost $ 150 to July 2017.
At the beginning of this week, the Japanese company GMO Internet announced that it would leave the mining sector, citing extraordinary losses during the year.
Nvidia did not respond to Cointelegraph's request for comment at the time of the press.