NVIDIA won the lawsuit against a group of investors who claimed they were misled by the company by failing to disclose the size of the crypto mining business as we are reading more in today’s cryptocurrency news.
The graphics chip manufacturer NVIDIA won the lawsuit against the investors who claimed they were misled with the judge concluding the investors’ evidence wasn’t convincing. The company ended the two-year lawsuit by having the claims dismissed that the graphic chip manufacturer hit reliance on its burgeoning crypto mining business to more than $1 billion. As Judge Haywood Gilliam explained:
“The allegations do not plausibly suggest that defendants acted with at least deliberate or conscious recklessness.”
The graphic cards are popular with the operators of crypto mining rigs so to mine BTC for example, a computer has to race to solve complicated math puzzles and the more powerful the cards are, there’s better chance that a miner earns BTC. To get ahead of the competition, many miners purchase graphic cards from Nvidia since the company produces some of the most powerful graphic chips in the world with the company also trying to disincentivize crypto miners from purchasing cards by launching non-graphics chips designed for crypto mining.
Until they go mainstream, this means that the profits made by Nvidia are somewhat tied to the fate of the volatile crypto market. A group of investors like fund managers and pensions alleged that the company didn’t disclose the size of the business which claimed it was more than $1 billion in 2017. The investors attributed the crash of the crypto market at the end of 2017 to the drop in stock prices. When the case went to court, the judge said there wasn’t enough evidence but the company’s lawyers dismissed the documents are arbitrary assumptions.
The judge still allowed some of the witness statements to proceed but found that they don’t show that the directors knew about the crypto sales meaning the investors couldn’t prove that they lied on the crypto mining biz data. As reported recently, The Graphics chipmaker Nvidia said that it will release a new series of semiconductors for mining Ethereum specifically and the company saw huge success with the sector back in 2017 when it claimed that it made hundreds of millions of dollars per quarter by selling chips to mines. The company designs graphics processing units for gaming and professional markets as well as systems on chip units for the mobile computing and automotive market.
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