It was a class-action lawsuit filed in 2017 by NVIDIA investors against it, which sought to declare the allegedly hidden profits from the sales of graphics cards to miners. Judge Haywood Gilliam has passed sentence and declares NVIDIA innocent.
It seems that there is an end to the controversy that arose between 2017 and 2018, in which a boom took place in the world of cryptocurrencies. This resulted in not having much stock, in addition to the units available having an exorbitant price. NVIDIA made "the August" thanks to this phenomenon since it sold numerous RTX 2000s and profited from it.
The prosecution does not prove irresponsibility and NVIDIA is acquitted
NVIDIA was rubbing its hands in 2018 with the cryptocurrency boom, allowing it to sell tons of graphics cards. However, there were stock and overpricing issues, something that condemned many gamers.
Following the 2017 class-action lawsuit against NVIDIA in the District of California, prosecutors have been unable to prove that NVIDIA was knowingly irresponsible in not disclosing information about revenues from sales of GPUs to miners. The ruling dictates that plaintiffs must allege facts to prove a degree of intent or incorrect knowledge.
NVIDIA earned $ 1.73 billion from GPU sales to miners between 2017 and 2018 but reported much lower revenue in earnings reports published in those periods. The thing did not add up and investors went to court to charge against "the green giant."
The claim of the lawsuit was not only to hold NVIDIA responsible for such malpractice but also to mislead investors and shareholders because NVIDIA had hidden its dependence on the cryptocurrency market. And it is that, unexpectedly, NVIDIA shares fell on the stock market after the end of the Bitcoin bubble. This phenomenon was called a "crypto hangover."
The investors hired and performed expert evidence by Prysm Group, a consultancy dedicated to the blockchain, who said that NVIDIA had included $ 1.73 billion in the departure of the funds earned by the gaming industry, whose total was $ 1,126 billion.
For auditing reasons, it is important to differentiate the money that comes from mining and that that comes from the gaming sector since they are different sectors. That said, the GPUs sold are those belonging to the company's gaming line ( GeForce ), so it would be a "trick" that would not reveal a completely true accounting image of NVIDIA's gaming figures.
What is the test problem for that figure? That there is no way to know how many graphics cards have been sold for mining purposes since it is not possible to track the use that is given to each GPU. NVIDIA has taken advantage of this evidentiary difficulty, which has taken the lead and, indeed, the prosecution has not been able to prove the facts that are charged.
With all this, a secret witness was brought to court, but he lied in his statements, which clearly benefited NVIDIA. So all this litigation ends with NVIDIA being acquitted, and investors will surely have to pay attorney's fees as well as court costs. The judge in charge of handling the case was Haywood Gilliam.
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