Nvidia Corporation (NVDA) Accused of Touting its Revenue Guidance
According to the complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between August 10, 2017 and November 15, 2018, demand for Nvidia’s GPUs initially surged as they became widely used in connection with cryptocurrencies. Nvidia Corporation (NVDA) assured investors that the company could adjust to rapid changes in the cryptocurrency market and that its executives are “masters at managing our channel, and we understand the channel very well.” Nvidia further assured investors that its core business was computer gamers who would compensate for any decline in demand from cryptocurrency users. When analysts upgraded Nvidia stock based on these representations, insiders sold significant amounts of personally held shares. In one instance, the company’s CEO sold 110,000 shares for $18 million in proceeds. When the company cut its revenue guidance by on November 15, 2018 – stating it would decline by over 7% instead of growing by 17% as previously expected – its stock declined $57.69, or almost 29%, over two trading sessions, wiping out over $35 billion in shareholder value.
Nvidia Corporation (NVDA) Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.