Nvidia offers compensation to GTX 970 users over RAM lawsuit

Nvidia has proposed a settlement that could pay $30 to users who purchased a GTX 970 graphics card.

Last year Ars Technica reported that Nvidia had made misleading claims in advertising the GTX 970, claiming that it had 4GB of high-speed GDDR5 RAM. The card however experienced performance issues when pushed and it emerged that the card only had 3.5GB of the high-speed RAM with the remaining 0.5GB running an estimated 80 per cent slower.

While Nvidia claims that the advertising was a result of a miscommunication between the company’s engineers and its technical marketers but that the company was not being purposefully misleading. 

According to the motion for preliminary approval of the proposed settlement filed in Northern California District Court last week, Nvidia “[continues] to vigorously deny all of the claims and contentions alleged in this Action.” The company, however, “considered the risks and potential costs of continued litigation of this action,” and decided to work towards a settlement.

Lawyers representing customers and Nvidia have come to an agreement after a year’s worth of talks that would offer $30 for each unit purchased along with $1.3 million in legal and plaintiff attorney fees.

The motion states that the $30 per unit should compensate customers for the missing data speed they thought they were getting. The GTX 970 cost approximately $350 on average between the day it went on shelves in stores and the day the lawsuit against Nvidia was filed. The motion states: “A cash payment of $30 for each Unit would constitute approximately 8.6 percent of the purchase price."

The settlement is still awaiting preliminary approval, so details could change before a judge grants final approval for the plan.

PCR has contacted Nvidia for comment as to how UK consumers will be affected and this story will be updated in due course.

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