NEW YORK, Jan. 29, 2019 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against NVIDIA Corporation ("NVIDIA" or the "Company") (NASDAQ: NVDA) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and indexed under 18-cv-07783, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise acquired NVIDIA securities between August 10, 2017 through November 15, 2018, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased NVIDIA securities between August 10, 2017, and November 15, 2018, both dates inclusive, you have until February 19, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
NVIDIA is a computer technology company founded in 1993 and is headquartered in Santa Clara, California. NVIDIA designs and sells graphics processing units ("GPUs") and software, traditionally in the computer gaming market. NVIDIA's business has since expanded to include GPUs used in connection with, inter alia, cryptocurrencies. NVIDIA's business in the cryptocurrency market, infamous for its growth and volatility, became especially integral to investors.
Defendants represented to investors that NVIDIA could competently navigate the cryptocurrency market throughout the Class Period. For example, Defendants assured investors that NVIDIA and its executives are "masters at managing [the Company's] channel" and "understand the channel very well," despite analysts' increasing qualms regarding NVIDIA's inventory management in that market. NVIDIA also consistently downplayed the Company's growing reliance on cryptocurrency-related sales, representing to investors that the cryptocurrency market made up little of NVIDIA's revenue. Defendants also touted the strong demand for its computer gaming GPUs, assuring investors that NVIDIA's computer gaming customer base would compensate for any decline in revenue from cryptocurrency-related sales.
NVIDIA's shares began to trade at record highs as analysts digested these repeated assurances to investors. Meanwhile, NVIDIA's senior executives were concurrently selling their own shares in significant amounts, including, inter alia, Jen-Hsun Huang ("Huang"), NVIDIA's Chief Executive Officer ("CEO"). Huang sold 110,000 personally-held NVIDIA shares during the Class Period, profiting by over $18 million.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the NVIDIA's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) NVIDIA's growth in its gaming GPU revenue was driven, as repeatedly denied by Defendants, in significant part by the spiked demand for those GPUs among cryptocurrency miners; (ii) NVIDIA did not have, as Defendants asserted, visibility into its inventory channel; (iii) NVIDIA was unable to adapt to the volatility of cryptocurrency markets; (iv) as cryptocurrency prices dropped, NVIDIA hid halting growth from cryptocurrency miners by continuing to push mid-range GPUs into the channel; (v) this would foreseeably cause an oversupply of gaming card inventory levels on the market and ultimately lead to over three months of excess inventory in NVIDIA's channel; and (vi) as a result, NVIDIA's public statements were materially false and misleading at all relevant times.
On November 15, 2018, NVIDIA disclosed that its revenue would decline by over 7% for the fourth fiscal quarter, sharply cutting its revenue guidance. This was in marked contrast to the 17% growth Defendants had previously led investors to expect. NVIDIA blamed the poor financial results on lower demand from cryptocurrency-related purchasers, which resulted in an oversupplied inventory of midrange GPUs. This inventory of GPUs had stored up in the channel before cryptocurrency-related demand for NVIDIA's GPUs rapidly declined.
On this news, NVIDIA shares declined by $57.69, or 28.5% over the next two trading sessions.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 9980
SOURCE Pomerantz LLP