Sep 18, 2020 at 19:49 UTCUpdated Sep 18, 2020 at 20:38 UTC
NVIDIA Corp. lawyers are pushing back against investors demanding to pull back the curtain on the chipmaker’s 2017 cryptocurrency mining hardware business.
- According to Law360, NVIDIA’s lawyers argued before a Delaware Court of Chancery official Thursday that plaintiffs lack sufficient evidence to probe the company’s 2017’s “crypto craze.”
- Investors are suing NVIDIA for allegedly understating a crypto mining hardware sales spike they claim undermined NVIDIA’s other chip businesses, according to the report.
- NVIDIA made as much as $1 billion selling graphics processing units (GPUs) to miners during the height of the crypto craze, according to plaintiffs in a different class- action suit.
- The Delaware plaintiffs further claim NVIDIA executives leveraged the unsustainable sales boom to sell $147 million in company stock “at artificially inflated prices,” Law360 reported.
- NVIDIA emerged from the boom with too much inventory and overly rosy revenue projections that had to be adjusted downward to the detriment of the company’s share price, investors claimed.
- NVIDIA lawyers argued the investors are cherrypicking executives’ statements, are being inconsistent in their records requests and may lack standing, according to the Law360 report.
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