SAN FRANCISCO (Legal Newsline) – A California designer and developer of graphics processing units is alleged to have defrauded investors.
Iron Workers Local 580 Joint Funds filed a complaint on behalf of itself and all others similarly situated on Dec. 21 in the U.S. District Court for the Northern District of California against NVIDIA Corp., Jensen Huang and Colette Kress alleging violation of federal securities laws.
According to the complaint, the plaintiffs are suing on behalf of a class who purchased NVIDIA stock between Aug. 10, 2017, and Nov. 15, 2018. The suit states NVIDIA designs and markets graphics processing units that were "widely used in connection with cryptocurrencies," the suit states.
"Given the volatility in the cryptocurrency market, the company’s ability to adapt to the ever-changing cryptocurrency landscape was critical to investors," the suit states. "Throughout the class period, defendants assured investors that the company followed the market closely and could adjust to rapid changes in the cryptocurrency markets."
The suit states in November 2018, NVIDIA cut its revenue guidance for the fiscal fourth quarter and its shares declined by 29 percent.
The plaintiffs hold NVIDIA Corp., Huang and Kress responsible because the defendants allegedly deceived the investing public and caused the plaintiffs economic harm.
The plaintiffs request a trial by jury and seek judgment against the defendants, award compensation, interest, costs, expenses, attorneys' fees, expert fees and further relief as the court may deem just. They are represented by David R. Stickney of Bernstein Litowitz Berger & Grossman LLP in San Diego, California and Hannah Ross and Avi Josefson of Bernstein Litowitz Berger & Grossman LLP in New York.
U.S. District Court for the Northern District of California case number 4:18-cv-07669