back to article Lawyers slap Nvidia with chip glitch lawsuit

A lawsuit alleging Nvidia violated US securities laws and kept secret a major defect in its graphics chip product line was filed in a Californian district court yesterday. Nvidia’s CEO Jen-Hsun Huang and CFO Marvin Burkett are accused of concealing the defect for eight months, even though – according to the allegations (pdf …


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  1. David Simpson
    Thumb Down


    I will never buy Nvidia again.

    My laptop died of Nvidia disease 3 months before HP ordered a warranty extension on it. I had of course already sold the heap of junk for spares so obviously i will never buy HP again either.

    Hope they get their asses sued off.

  2. This post has been deleted by its author

  3. Anonymous Coward
    Anonymous Coward


    This case is rediculous, let's sue or prosecute them because we can! Typical American attitude.

    Nvidia by making the decisions they made, they've lost a lot of money and damaged their reputation and their customers are well within their rights to vote with their feet and go buy from the competition. Customers that lost money because of the chip failures should re-imbursed, compensated.

    But this issue is purely between supplier and customer, it should be nothing to do with being sued/prosecuted under Security's a joke.

    If I design or make a product and it doesn't work properly I wouldn't expect to be prosecuted under anti-terrorist legislation! ( In the UK they're our security laws)

    or the data protection laws..let's get real about this.

  4. K. Adams


    While I agree that Class-Action lawsuits do nothing but add another layer of nice, green wallpaper to lawyers' bathrooms, I disagree with your assessment that the lawsuit has nothing to do with U.S. securities law...

    As a public company, nVIDIA has a fiduciary obligation to notify its shareholders on a quarterly basis about incidents that may materially affect the business, so that investors may make ongoing, informed decisions about their holdings in the company.

    I'd say that the nVIDIA Chip Fiasco falls squarely into that category. If nVIDIA did, in fact, know that there was a problem with its chips more than 6 or 9 months ago, and expected to take a big hit because of it, the incident should have been listed as a significant incident in nVIDIA's quarterly SEC (Securities and Exchange Commission) filings.

    The lawsuit alleges that this chip problem wasn't disclosed in a timely manner, robbing investors of their ability to make informed decisions with regard to their holdings.

    Personally, if you want to be nit-picky about it, the SEC should prosecute nVIDIA for fiduciary negligence. Any Class-Action lawsuits should be put on hold until the criminal implications are resolved.


  5. K. Adams

    Addendum: About SEC Filings

    For those that are curious, the US-SEC mandates that all public companies under its jurisdiction file as follows:

    -- Form 10-K: Detailed annual performance report - heavily audited

    -- Form 10-Q: Quarterly performance report - may not be audited

    -- Form 8-K: Report that must be filed within 4 business days of a materially significant incident


  6. Mike Kamermans

    @David Simpson

    You need your logic reexamined, mate. If HP doesn't offer a blanket RMA deal because NVidia hadn't 'fessed up yet, exactly how does that make HP accountable for Nvidia's problems? If anything, it'd be a reason to keep buying HP products, at least it seems they acted sensibly after a while, unlike other big name laptop manufacturers.

    Accountability fallacy... Rational thought, mate: always question your own, too.

  7. Jon Arden
    Paris Hilton


    Security - is the condition of being protected against danger, loss, and criminals. In the general sense, security is a concept similar to safety.

    Securities - *A* security is a fungible, negotiable instrument representing financial value. *Securities* are broadly categorized into debt securities, such as banknotes, bonds and debentures, and equity securities, e.g. common stocks.

    There is a difference between "Security" Law and "Securities" Law......

  8. Anonymous Coward
    Anonymous Coward

    Lawyers glitch slap Nvidia

    Missed a great headline opportunity.

  9. Doug Lynn

    nVidia when are you going to learn to be upfront with your customers and shareholders

    Hi, all they had to do was announce a mandatory bios update to prevent overheating and customers would have had there bios updated...what a public relations nightmare they caused themselves. 31% decline in stock value overnight! Guess this will help AMD/ATI big time.

  10. Chris Thomas

    lets make this more VISIBLE

    right now, ifyou type "nvidia gpu corruption" or other similar terms into google, you find almost nothing, I've found a total of two screenshots from about 2 hours of googling which shows the same problem, we dont want WORDS, we want PICTURES, all I found were words, words words, but nobody seems to put up any pictures to describe the problem.

    I think we should change this, on my blog, I have an article on this very problem, I also have pictures too, if anyone is interested to look go here

    if you want to send me your comments and if you can email pictures, I'll attribute them and update the article, cause I really want to know more about this, I want a body of evidence, so when I go to claim my free repair/replacement, I will get it without a fight, the only way I can see that happening, is by making them have no doubt that we all KNOW what the problem is and we all KNOW who is resposible.


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