Keller Rohrback L.L.P. Announces Derivative Lawsuit Filed Against Nvidia Corp. -- NVDA22 November 2006
Keller Rohrback L.L.P. announces that a shareholder derivative complaint has been filed in the United States District Court, Northern District of California, on behalf of nominal defendant Nvidia Corp. ("Nvidia" or the "Company") (Nasdaq:NVDA) and against certain past and present executive officers and directors of Nvidia.
On August 10, 2006, Nvidia announced that its Audit Committee, with the assistance of outside legal counsel, commenced a voluntary review of the Company's stock option grant practices from its initial public offering in 1999 through the current fiscal year 2006, that ended January 29, 2006. On September 11, 2006, Nvidia announced that the Securities and Exchange Commission (the "SEC") requested that the Company provide them with certain information relating to its historical stock option practices. On November 1, 2006, the Company announced that it expects to restate its previously issued financial statements for certain periods to correct errors related to accounting for stock-based compensation expense, but estimates that the net impact of the restatement will be combined non-cash charges of less than $150 million.
Keller Rohrback's investigation focuses on the extent that the Company's stock option grant dates and exercise prices of stock options were manipulated by Nvidia's executive officers and directors in order to boost their value to those who received them. Specifically, we are looking at whether potential defendants have breached their fiduciary duties and colluded with one another to: (1) improperly backdate grants of Nvidia's stock options to various executive officers and directors in violation of the Company's shareholder-approved stock option plans; (2) improperly record and account for the backdated stock options in violation of GAAP; (3) improperly take tax deductions based on the backdated stock options in violation of the Tax Code; and (4) produce and disseminate to the Company's shareholders false financial statements and other SEC filings that improperly recorded and accounted for the backdated option grants thereby concealing the improper backdating of stock options.
If you are a current Nvidia shareholder and have information that is relevant to our investigation, or if you would like additional information concerning the shareholder derivative claims presently being investigated, please contact paralegal Jennifer Tuato'o or attorneys Elizabeth Leland, Cari Campen Laufenberg, Lynn Sarko or Gary Gotto by telephone, toll-free at 1-800-776-6044, or via e-mail at: investor@kellerrohrback.com.
To date, more than 100 companies are being investigated by the U.S. Department of Justice, the Securities and Exchange Commission, and U.S. Attorney's offices across the country, resulting in civil and even criminal charges. Keller Rohrback L.L.P. is currently investigating the following companies for improperly manipulating the prices of options granted to executive officers and directors:
Company Company
Digital River Inc. Hansen Natural Corp.
Flir Systems Inc. Silicon Image, Inc.
Getty Images Inc. Valeant Pharmaceuticals Intl.
Keller Rohrback L.L.P. is a law firm headquartered in Seattle that has successfully represented shareholders and consumers in class action cases for over two decades. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.
CONTACT: Keller Rohrback L.L.P.
Jennifer Tuato'o
Paralegal
(800) 776-6044
Source: primezone
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