Proceedings from the United States’ Delaware Court of Chancery on Sept. 17 have shown that American multinational technology company Nvidia Corporation (NASDAQ: NVDA) is unwilling to reveal its internal record documents during the 2017 crypto craze in its ongoing class-action lawsuit.
Following allegations of misrepresenting facts and figures, Nvidia’s lawyers argued that the plaintiffs have failed to show a “credible basis” for why the company should be compelled to hand over the requested company documents. As reported, Nvidia is facing a class-action lawsuit on allegations that it misled investors as to how much its revenue relied on crypto miners buying its graphics processing units amid the 2017 bull run.
Nvidia’s representative Patrick Gibbs of Cooley LLP noted that the plaintiff is a stakeholder of Nvidia and thus has an interest in the firm while scorning the move to “rest on a paper record” at trial without offering live testimony as to their purpose for demanding that Nvidia hand over its internal documents
Following this tug of words, the court asked both Nvidia’s representatives and the plaintiff to submit post-trial briefings drawing on Nvidia’s argument and why it should allow it not to reveal the company’s documents
Nvidia Lawsuit Shows a Pattern
As the Nvidia lawsuit looms, a certain pattern may be recounted following the company’s past lawsuits. In July 2008, Nvidia took a write-down of approximately $200 million on its first-quarter revenue, after reporting that certain mobile chipsets and GPUs produced by the company had “abnormal failure rates” due to manufacturing defects. Nvidia, however, did not reveal the affected products.
The company also became the subject of a class-action lawsuit back in 2008 over the defects, claiming that the faulty GPUs had been incorporated into certain laptop models manufactured by Apple Inc (NASDAQ: AAPL), Dell Technologies Inc (NYSE: DELL), and Hewlett-Packard Company (NYSE: HPQ). The company settled this lawsuit when it reached an agreement that it will reimburse the owners of the affected laptops and offered outright replacement in some cases.
Firm Still Uptight in its Corporate Investment
While the company left the crypto business as its GPU hardware sales tanked following the toning down of the crypto market surge in 2018, the company is still prominent in maintaining its investment portfolio across the board.
The company made the headlines on Monday when it announced it will be buying British semiconductor giant Arm Holdings SoftBank Group Corp (OTCMKTS: SFTBY) in a deal worth $40 billion.
As Coinspeaker reported earlier, Nvidia doesn’t aim to change Arm’s licensing model post-acquisition. The company said that it won’t be doing anything that would cause clients to walk away. Speaking about their focus on data centers, Chief Executive Officer of Nvidia Jensen Huang said:
“What will change is the rate of our roadmap. We know for sure that data centers and clouds are clamoring for the Arm microprocessor, the Arm CPU.”
This way, the company will seek ways to prevent lawsuits that have plagued it in recent times.