Legal

Ongoing Lawsuit Against Nvidia – Case Details.

While several investors are already suing chipmaker giant Nvidia for allegedly misreporting the actual size of its cryptocurrency mining-related revenue have complained it’s now trying to block key evidence from a former employee.

The group of shareholders said Thursday that Nvidia’s lawyers had gotten the previous employee, named “FE 5,” to “disavow” several key statements and were now pushing for the entire testimony to be thrown out of court.

Having first brought charges earlier in the month of December 2018, the lawsuit alleges Nvidia downplayed the number of graphics cards – specifically GeForce GPUs – it had been selling to crypto mining operations so as to buoy up the stock price.

Although, Nvidia denied the accusations, claiming plaintiffs “cherry-picked” the information.

FE 5 gave evidence for an amended complaint earlier in mid-May that seemed to reveal that the chipmaker’s executive team, including founder and CEO Jensen Huang, was regularly updated with figures of GeForce GPUs being purchased by the cryptocurrency miners.

FE 5 was head of Nvidia’s consumer marketing in South Asia for 5 years until last year.

Nvidia’s lawyers informed plaintiffs earlier in June that they had identified and contacted FE 5, who had responded saying he/she had spoken under the misapprehension it was for research into the semi-conductor industry and not as evidence for an attempt against the corporate.

Plaintiff’s lawyers said that they had clearly identified themselves from the beginning, and argue FE 5 is now giving these allegedly false statements out of fear Nvidia could retaliate against her/him.

Plaintiffs are calling on the court to strike down Nvidia’s motion to dismiss evidence partly on the basis federal courts have rejected attempts by defendants to discredit the testimony from former employees within the past.

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