Investors suing chipmaker giant Nvidia for allegedly misreporting the size of its crypto mining sales have argued that they are now seeking to hide key facts from the former employee. The group of shareholders said Thursday that Nvidia ‘s lawyers had “disavowed” a number of key comments by the former employee, dubbed “FE 5,” and were now pushing for the entire testimony to be thrown out of court.
Having brought charges for the first time in December 2018, the lawsuit alleges that Nvidia trivialized the number of graphics cards – specifically GeForce GPUs – sold to cryptocurrency mining operations to boost the stock price.
Although, chipmaker giant, Nvidia has denied the allegations, claiming plaintiffs, cherry-picked the data.
Later, FE 5 shared proof for an amended complaint in mid-May that emerged to show the chipmaker giant’s executive team, including CEO and founder Jensen Huang, was routinely updated with the figures of GeForce GPUs being acquired by crypto miners. FE 5 was reportedly the former head of Nvidia’s consumer marketing team in South Asia for five years till 2019.
Further, Nvidia’s lawyers instructed plaintiffs in June that they had recognized and notified FE 5, who had answered saying he/she had spoken under the misunderstanding it was meant for research into the semi-conductor industry and not as a proof for a trial against the organization.
Plaintiff’s lawyers said that they had understandably recognized themselves from the beginning, and proclaim FE 5 is now providing these allegedly false statements out of fear Nvidia could reciprocate against him/her.
Plaintiffs are appealing to the court to strike down Nvidia’s motion to dismiss facts, in part on the basis of federal courts, which have dismissed the defendants’ efforts to refute the testimony of former employees in the past.
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