Legal representatives of technology company Nvidia said that investors were not allowed access to their internal records of “cryptomania” in 2017 and 2018.
During a trial in Delaware Clerical Court on September 17, Nvidia’s attorney stated that the plaintiffs had not provided “compelling reasons” to compel Nvidia to hand over the requested documents to the company.
Nvidia is facing a class-action lawsuit alleging it misled investors about the amount of revenue miners made from purchasing their GPUs during the 2017 Taurus campaign.
Patrick Gibbs of Cooley LLP criticized the plaintiffs’ decision to “rely on paper” during the trial for failing to provide living proof of their purpose, and demanded that Nvidia hand over its internal documents. He also said that evidence has been provided to demonstrate that the investors behind the lawsuit currently own shares in Nvidia and thus maintain their interest in the lawsuit.
The court advised both sides to hold post-trial briefings on Nvidia’s argument about why it had not transferred its internal records.
The lawsuit alleges that Nvidia made “false and misleading public statements about the company’s internal controls, potential customers and profits.” The lawsuit also accused Nvidia of selling $ 147 million in shares at artificially inflated prices.
Investors claim that after launching a dedicated cryptocurrency graphics processing unit (GPU) in May 2017, Crypto SKU and Nvidia sold SKUs only to miners wanted by miners.
Additionally, plaintiffs estimate that the famous $ 1 billion GeForce GPU sales that Nvidia claims purchased by gamers in 2017 was already purchased by cryptocurrency workers.
After the cryptocurrency bubble burst and demand for the minerals began to dry up, Nvidias struggled to load its GPU stock, and by the end of 2018 the stock price was 30%.