New Orleans (LA) – Law firm Kahn Gauthier Swick said it has filed a securities class action lawsuit against Nvidia, claiming that Nvidia issued false statements about the failure rates of its chips, negatively impacting the financial performance of the company and, as a result, its stock. It is the second suit filed against Nvidia alleging that Nvidia violated the Securities Exchange Act – the first one was filed earlier this week by law firm Shalov Stone Bonner & Rocco.

According to Kahn Gauthier Swick, Nvidia issued a “series of materially false statements that concealed and failed to disclose” unusually high failure rates, which ended up “adversely impacting the company's near-term and foreseeable financial and operational results.”  Stockholders lost more than $3 billion in Nvidia market capitalization as a result. Like the previous suit, Nvidia warned investors too late (July 2, 2008).

There was no further information given that would shed some light on the evidence Kahn Gauthier Swick may have in its hands to support its claims. At least as far as Shalov Stone Bonner & Rocco suit is concerned, we believe that such claims be walking on thin ice.

However, if a class actions tatus is granted and the lawyers are able to prove that Nvidia in fact did conceal the true extent of the problem (which we extensively described here) and did not inform its investors in time, the company may have to shell out much more than the $196 million it reserved for repairs of notebooks affected by the failures and the compensatory damages these law firms are seeking.

Both Kahn Gauthier Swick and Shalov Stone Bonner & Rocco are currently looking for investors to join their suits.
   

Quick,

Sep 12, 2008 13:24     

go join the lawsuits so you can get a check for thirty five dollars compensation, while the lawyers make millions. Not that I am excusing nVidia's behavior; it's just that class action lawsuits ALWAYS screw the plaintiffs. Yay, we get to watch lawyers put nVidia out of business so the investors can afford dinner for one at Outback Steakhouse that evening. How typical.
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Green to hEll

Sep 15, 2008 06:56     

i hate Nvidia very much but i do hope they wont go out of business. We still need them for competitions
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