On July 2, 2008, the Company disclosed that flawed GPU and MCP manufacturing processes and materials caused notebook computers containing these products to fail at unusually high rates. Defendants further disclosed the belated establishment of a $196 million dollar reserve for a loss contingency related to defects in the Company’s GPU and MCP products during the quarter ended on October 28, 2007.As a result of the Company’s July 2, 2008 announcement, investors learned Defendants’ prior Class Period statements regarding NVIDIA’s financial condition, results, products, and business prospects were materially false and misleading when made because Defendants failed to timely disclose the defects in the Company’s GPUs and MCP products and their impact on the Company. On this revelation, NVIDIA’s stock plummeted by 31% (thirty-one percent) from an intraday high of $18.78 per share on July 2, 2008 to an opening of $12.98 per share on July 3, 2008 – a decline that cut NVIDIA’s market capitalization by over $3 billion overnight, thereby damaging Plaintiffs and the Class. In the ninety days following this belated revelation, NVIDIA’s share price continued to decline without recovering, averaging $11.82 per share. About Kahn Swick & Foti, LLC KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action litigation with offices in New York and Louisiana. KSF's lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders. To learn more about KSF, you may visit www.ksfcounsel.com.
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.