NEW YORK, Feb. 14, 2019 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against NVIDIA Corporation (“NVIDIA” or the “Company”) (NASDAQ: NVDA) in the United States District Court for the Northern District of California on behalf of those who purchased or acquired the securities of NVIDIA between August 10, 2017 and November 15, 2018, 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.
The Complaint alleges that NVIDIA and certain of its senior executives made materially false and misleading statements regarding the Company’s business and its ability to react to fluctuations in demand for GPUs. Specifically, Defendants falsely assured investors of their ability to see into their inventory channel and react to the volatility of cryptocurrency markets. Furthermore, after cryptocurrency miners’ demand for GPUs fell, NVIDIA continued to push GPU stock into the channel, causing a foreseeable oversupply of inventory. NVIDIA also reassured investors about its ability to manage inventory and adapt to the volatility of the cryptocurrency market. These statements concealed the magnitude of the inventory problem and the impact declining cryptocurrency -- based demand would have on the Company’s growth.
The truth was partially revealed on August 16, 2018, as NVIDIA lowered its revenue guidance for the third quarter of 2018 and reported that it no longer expected a meaningful contribution from cryptocurrency miners. The Company also reported a 30% increase in existing GPU inventory compared to the prior quarter. In response, NVIDIA’s common stock price declined by $12.62, or 4.9%, to close at $244.82 on August 17, 2018.
On November 15, 2018, it was further revealed that when NVIDIA cut its revenue guidance for the fiscal fourth quarter from 17% growth to 7% decline. The Company attributed the results to increased inventory of GPUs that had built up before the decline in cryptocurrency-related demand. On this news, NVIDIA’s stock price fell by $57.69, or 28.5% over the next two trading days to close at $144.70 on November 19, 2018, eliminating more than $35 billion in shareholder value.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the February 19, 2019 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
Please visit our website at http://www.gme-law.com for more information about the firm.
