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NVIDIA will have to answer in court for hiding information about defective GPUs
GPU manufacturer sued for hiding information on defective GPUs, resulting in financial losses for investors. Claim filed by the company’s shareholder, Lisa Miller.
According to the document, the company knew about the problem with the GPU last year, but did not report the problem to shareholders. NVIDIA had to admit earlier this summer that GPU defects do exist.
Recall that in July NVIDIA confirmed that the problem exists and it is associated with overheating of microcircuits in laptops. As a result of expansion and contraction caused by heating and subsequent cooling, the components of the microcircuits were destroyed, which led to the loss of electrical contacts and the failure of laptops.
NVIDIA’s stock price immediately collapsed when the issue became known. The price of one share of the company fell 31% from $ 18.78 to $ 12.98 in one night. In fact, this corresponds to a decrease in funds invested by shareholders by 3 billion. Doll. in less than a day. At the same time, the cost of repairing and exchanging defective products is estimated at approximately $ 200 million. Doll. Shareholders are demanding compensation from NVIDIA due to obvious losses caused by information hiding.
“The truth is that at least in November 2021, NVIDIA and other defendants were already aware of an unprecedented number of failures and their root causes,” the statement said. “However, for at least eight months, the defendants withheld information from NVIDIA investors about the defects, their apparent impact on the company’s financial condition and future business prospects.”.
Source: PC Pro