A lawsuit filed in a California court on Tuesday alleged Nvidia violated U.S. securities laws and concealed the existence of a serious defect in its graphics-chip line for at least eight months "in a series of false and misleading statements made to the investing public."

The lawsuit charged that Nvidia CEO Jen-Hsun Huang and CFO Marvin Burkett knew as early as November 2007 about a flaw that exists in the packaging used with some of the company's graphics chips that caused them to fail at unusually high rates.

Posted: Sep 11, 2008 10:45 am