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We already reported that Nvidia is facing a class action lawsuit for allegedly violating federal securities law. As a reminder, Nvidia stock was sitting at about 155 dollars a share in August 2017, which is the beginning of the "class period" in this particular suit. It shot up to over $281 dollars a share in September this year, then quickly dropped to around $144 by November. Most companies in the tech sector didn't do particularly well during that period, but Nvidia rose, and fell, harder than almost anyone else. While the focus of the class action lawsuit is on the crytpocurrency market in relation to Nvidia's forecasts, iamjanco spotted an interesting claim in one of the court documents. The attorneys say Nvidia executives, including Jensen Huang, sold millions of dollars in stock as the price was shooting up. Assuming those claims hold any weight, trading on insider knowledge illegal, and similar accusations were made against Intel's former CEO about a year ago.
These representations had their intended effect, as analysts upgraded the Company’s stock and NVIDIA shares traded at record highs. At the same time, NVIDIA senior executives began selling significant amounts of their personally held shares. For example, CEO Huang sold 110,000 of his personally-held NVIDIA shares during the Class Period, reaping over $18 million in proceeds.
These representations had their intended effect, as analysts upgraded the Company’s stock and NVIDIA shares traded at record highs. At the same time, NVIDIA senior executives began selling significant amounts of their personally held shares. For example, CEO Huang sold 110,000 of his personally-held NVIDIA shares during the Class Period, reaping over $18 million in proceeds.