NVIDIA the Target of a Class-Action Suit

How many times in the past two years have we said, “Poor ATI”? It’s amazing how fast things can change in this industry, because now it’s definitely “Poor NVIDIA”. Not only has AMD come out with a killer line-up of new ATI cards, their processor line seems to be heading towards the right direction (although it will be a SLOW process to catch up to Intel). Instead, it’s NVIDIA who has all the issues right now.

As if dealing with a myriad of mobile GPU failures wasn’t enough, the company has now been issued a class-action lawsuit that claims the Santa Clara-based company knew well in advance of the issues at hand, but kept quiet about it. The exact demands from the lawsuit don’t seem to be clear, but it will be brought forth on behalf of all shareholders who bought stock between November 8, 2007 and July 2, 2008.

The full extent of the mobile GPU issue has not yet been seen, but many consumers and analysts alike are concerned that the GPUs will begin dying after warranties run out, which is not going to fare well for anyone – especially NVIDIA. It’s going to be an interesting process to watch, but we can hope that it will work out to the consumer’s favor.

The drop in stock price cut NVIDIA’s market capitalization by more than $3 billion, and the stock has not substantially recovered. In the two months since its announcement, NVIDIA’s stock has hovered mostly between $10 and $11 dollars, with a brief peak at just over $14 in the later weeks of August. As of today, NVDA stock was valued at $10.92 per share.