NEW YORK, Dec. 21, 2018
/PRNewswire/ -- Bernstein Litowitz Berger & Grossmann LLP
("BLB&G") today announced that it filed a securities class
action lawsuit on behalf of its client Iron Workers Local 580 Joint
Funds against NVIDIA Corporation ("NVIDIA" or the "Company")
(NASDAQ: NVDA), and certain of its executives (collectively,
"Defendants"). The action, which is captioned Iron Workers
Local 580 Joint Funds v. NVIDIA Corporation, et al., No.
18-cv-7669 (N.D. Cal.), asserts claims under Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"),
15 U.S.C. §§ 78j(b) and 78t(a), and Rule 10b‑5 promulgated
thereunder, 17 C.F.R. § 240.10b-5, on
behalf of investors who purchased NVIDIA's stock between
August 10, 2017 and November 15, 2018, inclusive (the "Class
Period").
The Complaint alleges that, during the Class Period, Defendants
violated provisions of the Exchange Act by issuing false and
misleading press releases, filings with the U.S. Securities and
Exchange Commission ("SEC"), and statements during investor and
analyst conference calls.
NVIDIA designs, develops, and markets graphics processing units
("GPUs") and related software. Although traditionally used in
connection with computer gaming, demand for the Company's GPUs
surged as NVIDIA's GPUs became widely used in connection with
cryptocurrencies. Given the volatility in the cryptocurrency
market, the Company's ability to adapt to the ever-changing
cryptocurrency landscape was critical to investors.
Throughout the Class Period, Defendants assured investors that
the Company followed the market closely and could adjust to rapid
changes in the cryptocurrency markets. Even as analysts
increasingly began to question the Company's ability to manage
inventory in the face of an uncertain cryptocurrency market,
Defendants touted that NVIDIA and its executives are "masters at
managing our channel, and we understand the channel very
well." NVIDIA also repeatedly assured investors that surging
demand for GPUs among cryptocurrency miners would not have a
negative impact on the Company because of strong demand for GPUs by
NVIDIA's core customer base of computer gamers. As a result
of these misrepresentations, NVIDIA shares traded at artificially
inflated prices throughout the Class Period.
The truth began to be disclosed on August
16, 2018, when NVIDIA lowered its revenue guidance for the
third quarter of 2018 and reported that it no longer expects a
meaningful contribution from cryptocurrency miners for the
remainder of the year. NVIDIA also reported that its GPU
inventory had ballooned by over 30% from the prior quarter, which
investors feared could be a sign of slowing demand for NVIDIA's
GPUs. Then, on November 15,
2018, NVIDIA significantly cut its revenue guidance for the
fiscal fourth quarter, revealing that revenue would decline by over
7% in the quarter. NVIDIA attributed its poor financial
results to surging inventory of midrange GPUs that built up in the
channel before the rapid fade of cryptocurrency mining. As a
result of these disclosures, the price of the Company's stock
declined significantly.
If you wish to serve as lead plaintiff for the Class, you must
file a motion with the Court no later than February 19, 2019, which is 60 days after the
publication date of December 21,
2018. Any member of the proposed class may move the Court to
serve as lead plaintiff through counsel of their choice, or may
choose to do nothing and remain a member of the proposed class.
Iron Workers Local 580 Joint Funds is represented by BLB&G,
a firm of over 100 attorneys with offices in New York, California, Louisiana, and Illinois. If you wish to
discuss this Action or have any questions concerning this notice or
your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or
via e-mail at avi@blbglaw.com.
Since its founding in 1983, BLB&G has built an international
reputation for excellence and integrity. Specializing in
securities fraud, corporate governance, shareholders' rights,
employment discrimination, and civil rights litigation, among other
practice areas, BLB&G prosecutes class and private actions on
behalf of institutional and individual clients worldwide.
Unique among its peers, BLB&G has obtained several of the
largest and most significant securities recoveries in history,
recovering billions of dollars on behalf of defrauded investors.
More information about BLB&G can be found online at
www.blbglaw.com.
CONTACT:
Avi Josefson
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor
New York, New York 10020
(212) 554-1493
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SOURCE Bernstein Litowitz Berger & Grossmann LLP