NVIDIA Lawyers Dismiss Investors' Crypto Mining Doc Requests: Report
Investors accuse NVIDIA of bungling the chipmaker's response to 2017's mining hardware boom.
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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