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NVIDIA Settles GTX 970 False Advertising Lawsuit

Graphics card manufacturer Nvidia agreed to a preliminary settlement that will resolve claims in a group of proposed class action lawsuits that center around allegations that the company misled consumers about the performance and storage capabilities of its product.

Nvidia says it will pay each buyer of the graphics card $30 and will pay an additional $1.3 million in attorneys’ fees, according to settlement documents.

The overall settlement amount was not publicly disclosed within court papers, however Nvidia agreed to pay all consumers who purchased the GTX 970 graphics card and indicated there would not be a cap on the total amount it would pay consumers.

“The settlement is fair and reasonable and falls within the range of possible approval,” attorneys for the proposed Class said in the filing. “It is the product of extended arms-length negotiations between experienced attorneys familiar with the legal and factual issues of this case and all settlement class members are treated fairly under the terms of the settlement.”

The initial proposed class action lawsuit in a series of lawsuits against Nvidia was filed in February 2015 and alleged that the company engaged in false advertising, deceptive business practice, unlawful is practices and violated California’s business law for unfair business practices.

The initial claim accused Nvidia of having a graphics card that operated on 3.5 GB but was advertised as operating with a full 4 GB of video access memory, plus another .5 GB that was separated from the rest of the memory.

Another proposed class action lawsuit in the series was filed the following month and also alleged similar claims about the gigabyte amounts and separation, saying the product was falsely advertised and negligently represented.

The recent settlement with Nvidia includes a total of 15 consumer class action lawsuits that were consolidated in Northern California as well is a pending action in San Diego, according to court documents.

In addition to the size of video access memory and its setup, the consumers also accused Nvidia of having 64 render output processors rather than the 56 that were advertised and of having smaller specialized memory cache than advertised.

The consumers claimed that overall, Nvidia omitted information that was important for buyers to understand as they made their purchases, causing potential Class Members to purchase products with lower functionality and capabilities than what was advertised.

Nvidia denied all allegations of wrongdoing, and both parties entered into the settlement and agreed upon the terms, believing them to be in the best interests of all parties involved.

Nvidia graphics cards cost approximately $350 and the anticipated $30 payout was calculated to represent a portion of the cost of the storage and performance capabilities the consumers thought they were obtaining in the purchase of the product, according to the proposed settlement.

Source: Top Class Actions

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