Kahn Swick & Foti, LLC And Former Louisiana Attorney General Announce Investigation Into Nvidia Corp. Continues In Securities Fraud Class Action Pending In United States District Court For The Northern District Of California - NVDA
Kahn Swick & Foti, LLC ("KSF") and KSF partner Former Attorney General of Louisiana, Charles C. Foti, Jr. announce that the firm continues to investigate fraud allegations in the firm’s securities fraud class action lawsuit against Nvidia Corporation ("NVIDIA" or the "Company") (Nasdaq: NVDA - News). The lawsuit, In re Nvidia Corporation Securities Litigation, Case No. 08-CV-4260-RS, is pending in the United States District Court for the Northern District of California on behalf of purchasers of the common stock of the Company between November 8, 2007 and July 2, 2008, inclusive (the "Class Period"). No class has yet been certified in this action. What You May Do If you have information that would assist KSF in its ongoing investigation, or would like to discuss your legal rights, you may, without obligation or cost to you, call or e-mail KSF Managing Partner, Lewis Kahn ( firstname.lastname@example.org), toll free 1-866-467-1400, ext. 200, after hours via cell phone 504-301-7900. KSF encourages anyone with information regarding NVIDIA’S conduct during the period in question to contact the firm to discuss the investigation, including whistleblowers, former employees, shareholders and others. KSF attorneys have significant experience in representing both institutional and individual shareholders in securities fraud litigation nationwide. About the Lawsuit The lawsuit alleges that beginning at least as early as August 2007, NVIDIA knew that its graphics chipsets were defective and caused notebook computers to overheat. Prior to the start of the Class Period, NVIDIA was in active discussions with its main customers, Hewlett-Packard (“HP”) and Dell Incorporated (“Dell”), about how to cure problems with its chips on both a short and long term basis. Nevertheless, NVIDIA failed to disclose to its shareholders and the public that its products were defective. By the close of the quarter ended October 28, 2007, NVIDIA’s knowledge of the problems associated with its malfunctioning graphics chipsets required that a reserve be established for a loss contingency under Generally Accepted Accounting Principles (“GAAP”). However, Defendants refused to establish this reserve. As a result, Defendants artificially inflated NVIDIA’s net income by 83 percent in the quarter ended October 28, 2007; 24.6 percent for the fiscal year ended January 27, 2008; and 111 percent for the quarter ended April 27, 2008.