`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`Plaintiffs,
`
`
`v.
`
`
`MARK TWARDZIK, on behalf of himself and all
`others similarly situated,
`
`
`
`
`HP INC., and NVIDIA CORPORATION,
`
`
`
`
`
`
`
`Defendants.
`
`
`
`
`
`
`
`
`Case No. _________________
`
`JURY TRIAL DEMANDED
`
`
`
`
`
`
`CLASS ACTION COMPLAINT
`
`Plaintiff Mark Twardzik (“Plaintiff”) by and through his undersigned counsel, brings this
`
`action against HP Inc. (“HP”) and NVIDIA Corporation (“NVIDIA,” and together with HP, the
`
`“Defendants”) for rescission, monetary damages, and injunctive and declaratory relief. Plaintiff
`
`alleges the following based on personal knowledge as to his own acts and the investigation
`
`conducted by counsel as to all other allegations:
`
`NATURE OF THE ACTION
`
`1.
`
`Plaintiff brings this action on behalf of himself and other similarly-situated
`
`consumers across the country who purchased an HP laptop computer containing the slowed variant
`
`of the NVIDIA GeForce MX150 graphics processor unit detailed herein (the “Class Laptops”).
`
`2.
`
`The HP Envy 13 is an “ultrabook” laptop, so-called due to its small size and
`
`allegedly high performance. HP also sells Envy laptops with similar specifications in larger sizes.
`
`3.
`
`The NVIDIA GeForce MX150 (the “MX150”) is a graphics card. The most
`
`important part of the graphics card, i.e., the “brain” of the card, is the graphics processing unit
`
`(“GPU”).
`
`
`
`
`
`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 2 of 32 PageID #: 2
`
`4.
`
`A GPU’s purpose is to receive visual data from the computer’s central processing
`
`unit (“CPU”), process those data into images, and transmit those images to the computer’s monitor
`
`for display to the user. All else being equal, “[t]he more sophisticated the GPU, the higher the
`
`resolution and the faster and smoother the motion in games and movies.” Definition of: GPU,
`
`PCMag.com, available at https://www.pcmag.com/encyclopedia/term/43886/gpu (last accessed
`
`July 20, 2019). A fast GPU generally improves user experience by speeding up graphics
`
`processing, and a powerful GPU is critical to certain graphics-intensive computer uses such as
`
`running video games and virtual reality software, photo- and video-editing software, three-
`
`dimensional modeling, and video and image processing. “A good graphics card is the most
`
`important part of a gaming PC.” Jon Martindale, The best graphics cards for 2019,
`
`DigitalTrends.com (July 15, 2019), https://www.digitaltrends.com/computing/best-graphics-
`
`cards/.
`
`5.
`
`Conversely, an underpowered GPU can negatively impact the user experience by
`
`reducing render speed, display quality, and operating stability. When a GPU is insufficiently
`
`powerful to handle a graphics processing task, it can cause visual anomalies such as artifacts,
`
`flickering images, and screen stuttering. GPU output may lag, reducing the framerate and reducing
`
`responsiveness to user input, or the GPU may even crash. The reduced frame rate, stuttering, and
`
`lag caused by an underpowered GPU can render a video game or other graphics-intensive program
`
`unusable.
`
`6.
`
`Many original equipment manufacturers (“OEMs”) incorporate the MX150 into
`
`their laptops (or offer it as an optional upgrade), and there are dozens of laptop models containing
`
`the MX150.
`
`- 2 -
`
`
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`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 3 of 32 PageID #: 3
`
`7.
`
`NVIDIA released the MX150 in May 2017. A month later, HP released a version
`
`of the Envy 13 incorporating the MX150.
`
`8.
`
`NVIDIA marketed the MX150 as a single hardware component with uniform
`
`performance specifications, when in fact, there were two variants of the MX150: one that
`
`performed at the advertised specifications (the “Standard MX150”), and another that performed
`
`substantially worse (the “Slowed MX150”).
`
`9.
`
`Beginning in June 2017, HP gave customers purchasing Envy laptops the option to
`
`upgrade from the machine’s base GPU by adding the MX150. Customers who purchased the larger
`
`models of the Envy received the Standard MX150, while customers who purchased the smaller
`
`Envy 13 received the Slowed MX150.
`
`10.
`
`Both HP and NVIDIA knew that the Slowed MX150 was materially inferior to the
`
`Standard MX150, but neither company differentiated between the two variants in marketing
`
`materials.
`
`11.
`
`NVIDIA similarly misrepresented the speed and performance boost offered by the
`
`MX150, claiming that in comparison with its predecessor, the GeForce 940MX, it offered “up to
`
`3x superior performance-per-Watt” and approximately 33 percent better performance in various
`
`computing activities. Andrew Burnes, Introducing GeForce MX150 Laptops: Supercharged For
`
`Work
`
`and Play, NVIDIA.com
`
`(May
`
`25,
`
`2017),
`
`https://www.NVIDIA.com/en-
`
`us/geforce/news/NVIDIA-geforce-mx150-laptops//. On its website, NVIDIA claims that the
`
`“MX150 supercharges your laptop for work and play. Get up to 4X faster performance over
`
`integrated graphics for photo and video-editing applications, as well as faster, smoother gaming.”
`
`GeForce® MX150 Dedicated Graphics
`
`for Laptops, GeForce.com, available at
`
`https://www.geforce.com/hardware/notebook-gpus/geforce-mx150 (last accessed July 20, 2019).
`
`- 3 -
`
`
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`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 4 of 32 PageID #: 4
`
`12.
`
`HP did not disclose to purchasers of the Class Laptops that they contained a GPU
`
`that was materially inferior to the larger Envy models. Instead, HP fully adopted NVIDIA’s
`
`misleading uniform branding of the MX150.
`
`13.
`
`HP marketed the Class Laptops as being “exceptionally powerful,” with
`
`“[i]ncredible speed,” and claimed that “the latest Intel® Core™ i processor[2] (optional NVIDIA®
`
`GeForce® MX150 graphics) combine for unbridled performance that overpowers even the most
`
`demanding
`
`tasks.” HP ENVY
`
`- 13-ad173cl
`
`(1KT13UA) Datasheet, available at
`
`https://pcb.itcs.hp.com/dc/api/spec-sheet/ww-en/18021530/pdf/1KT13UA.pdf (last accessed July
`
`20, 2019). HP promised consumers that “your computer will have the power and responsiveness
`
`to help your productivity soar. Experience amazing gaming performance, seamlessly edit and share
`
`360 video, and enjoy fantastic 4K Ultra HD entertainment.” HP ENVY - 13-ah1031tx Product
`
`Page, HP.com, available at https://store.hp.com/sg-en/default/laptops-tablets/hp-envy-13-
`
`ah1031tx-5hz24pa.html (last accessed July 20, 2019).
`
`14.
`
`Based on Defendants’ representations, Customers who purchased Class Laptops
`
`paid a premium for computers that performed substantially worse than advertised and were
`
`unsuitable for uses that require a more powerful GPU.
`
`15.
`
`In March of 2018, NotebookCheck.com published an article showing that there are
`
`actually “two distinct versions of the GeForce MX150 with wide performance differences and
`
`power demands.” The second version is notably slower and less demanding than the ‘standard’
`
`MX150 . . . .” Allen Ngo, NVIDIA has been sneaking in slower GeForce MX150 '1D12' variant
`
`onto
`
`some
`
`Ultrabooks,
`
`NotebookCheck.com
`
`(March
`
`19,
`
`2018),
`
`https://www.notebookcheck.net/NVIDIA-has-been-sneaking-in-slower-GeForce-MX150-1D12-
`
`variant-onto-some-Ultrabooks.289358.0.html.
`
`- 4 -
`
`
`
`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 5 of 32 PageID #: 5
`
`16.
`
`The Slowed MX150 performs substantially worse than the Standard MX150, with
`
`“a significant performance drop of about 20 to 25 percent between the two versions of the
`
`MX150.” The base clock rate (a measure of processing speed) of the Slowed MX150 is “36 percent
`
`slower” than the Standard MX150, and “[r]aw graphics performance is unsurprisingly faster” on
`
`laptops containing the Standard MX150. Id.
`
`17.
`
`Although NVIDIA claimed the MX150 would perform 33 percent better than its
`
`predecessor, the GeForce 940MX, the Slowed MX150 performs at essentially the same level.
`
`18.
`
`There are two tiers of laptops containing the MX150: those that perform as
`
`advertised, and those that do not. The Class Laptops are on the lower end of the latter tier. Laptops
`
`containing the Standard MX150 outperform laptops containing the Slowed MX150 by a significant
`
`margin.
`
`19.
`
`In tests comparing the performance of the Class Laptops against approximately two
`
`dozen laptops containing either the Standard MX150 or the Slowed MX150, the Class Laptops
`
`were 20 to 28 percent slower than the fastest laptop (which contained the Standard MX150), and
`
`9 to 17 percent slower than the average of all laptops tested. Id.
`
`20.
`
`On information and belief, NVIDIA and HP were aware of the disparity between
`
`the two MX150 variants and concealed the fact that the Slowed MX150 was inferior to the
`
`Standard MX150.
`
`21.
`
`NVIDIA differentiates between the two variants internally, Nate Oh, NVIDIA
`
`Silently Rolls Out Slower, Lower TDP GeForce MX150 for Ultrabooks, AnandTech.com (March
`
`23, 2018) https://www.anandtech.com/show/12565/NVIDIA-silently-rolls-out-slower-mx150-
`
`for-ultrabooks (last accessed July 20, 2019), and according to analysts there is ample evidence that
`
`the Slowed MX150 is “a vendor-side variant undisclosed to consumers.” Id.
`
`- 5 -
`
`
`
`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 6 of 32 PageID #: 6
`
`22.
`
`According to a support agent of HP, “the only way to find out [which version of
`
`the MX150 is in a computer] is from the computer” as “[t]he information is not available in the
`
`product specifications.” Does MX150 in the HP Pavilion15-cs0025cl use N17S-G1-A1 or the
`
`N17S-LG-A1?,
`
`HP
`
`Community
`
`Forum
`
`(Nov.
`
`4,
`
`2018),
`
`available
`
`at
`
`https://h30434.www3.hp.com/t5/Notebook-Hardware-and-Upgrade-Questions/Does-MX150-in-
`
`the-HP-Pavilion15-cs0025cl-use-N17S-G1-A1-or/td-p/6887373 (last accessed July 20, 2019).
`
`23.
`
`Because the specification sheet for the Class Laptops simply advertises the MX150
`
`without disclosing that it is referring to the Slowed MX150 variant, consumers who opted for the
`
`MX150 upgrade purchased laptops that performed substantially worse than advertised and were
`
`unsuitable for many of the uses that would prompt purchasers to opt for the MX150 upgrade in the
`
`first place.
`
`24.
`
`To date, the Slowed MX150 variant has been found only in ultrabook laptops, and
`
`only in the 13-inch versions (typically the smallest size) of those laptops.
`
`25.
`
`On information and belief, NVIDIA designed the Slowed MX150 to be better suited
`
`to the physical limitations of the smallest laptop computers.
`
`26.
`
`This arrangement allowed NVIDIA to sell more GPUs and HP to market the Class
`
`Laptops to consumers who need a high-performing GPU despite the fact that the Class Laptops
`
`are unsuitable for many graphics-intensive uses.
`
`27.
`
`Defendants engaged in a deceptive and misleading marketing campaign to sell
`
`computer hardware and laptop computers containing such hardware by advertising such hardware
`
`as a single brand with uniform specifications when in fact, the product line consists of two distinct
`
`models, with a substantial performance disparity between them. Consumers who purchased laptops
`
`containing the inferior hardware received computers that were materially slower than advertised
`
`- 6 -
`
`
`
`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 7 of 32 PageID #: 7
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`and unfit for their intended purpose. Defendants’ greed-driven scheme is at the expense of
`
`consumers across the country and in violation of applicable law.
`
`28.
`
`Through its misleading marketing, Defendants violated the common law of
`
`Delaware and Maryland, as well as statutes prohibiting misleading and unfair sales practices across
`
`the country.
`
`29.
`
`Plaintiff brings common law warranty and unjust enrichment claims and claims
`
`against Defendants under various States’ unfair and unlawful trade practices statutes (see
`
`Appendix A) and the Maryland Consumer Protection Act (“MCPA”), Md. Code, Com. Law §§
`
`13-101, et seq.
`
`30.
`
`Plaintiff, on his own and on behalf of all others similarly situated, now seeks
`
`declaratory relief, rescission or damages, restitution, disgorgement of profits and other equitable
`
`remedies, including an injunction enjoining Defendants’ methods, acts, and practices as described
`
`herein, as well as Plaintiff’s reasonable attorneys’ fees and expert fees, and any additional relief
`
`that this Court determines to be necessary or appropriate to provide complete relief to Plaintiff, the
`
`Class, and the Subclass.
`
`PARTIES
`
`31.
`
`Plaintiff Mark Twardzik is an individual who resides in Ellicott City, Maryland. In
`
`reliance on Defendants’ advertising and marketing, Plaintiff paid $849.99 for an HP Envy 13-
`
`AD173CL, including the MX150 upgrade, which he purchased from an online third-party retailer
`
`on March 21, 2018.
`
`32.
`
`Defendant HP is a corporation organized under the laws of the State of Delaware,
`
`with headquarters located at 1501 Page Mill Road, Palo Alto, California.
`
`- 7 -
`
`
`
`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 8 of 32 PageID #: 8
`
`33.
`
`HP is an American multinational information technology company that designs,
`
`manufactures, markets, distributes, and warrants personal computers and related supplies. HP
`
`designed, manufactured, marketed, warranted, distributed, and sold the Class Laptops. HP is a
`
`public company listed on the New York Stock Exchange and is a constituent of the S&P 500 Index.
`
`It is the world's largest personal computer vendor by unit sales and ranked 58 in the 2018 Fortune
`
`500 list of the largest United States corporations by total revenue.
`
`34.
`
`Defendant NVIDIA is a corporation organized under the laws of the State of
`
`Delaware, with headquarters located at 2701 San Tomas Expressway, Santa Clara, California.
`
`35.
`
`NVIDIA is an American technology company that designs, manufactures, markets,
`
`distributes, and warrants GPUs for the gaming and professional markets. NVIDIA designed,
`
`manufactured, marketed, warranted, distributed, and sold the MX150. The “GeForce” brand of
`
`GPUs is its primary product line.
`
`JURISDICTION AND VENUE
`
`36.
`
`Pursuant to the Class Action Fairness Act of 2005, 28 U.S.C. §1332(d)(2) and (6),
`
`this Court has original jurisdiction. The aggregated claims of the individual class members exceed
`
`the sum or value of $5,000,000, exclusive of interest and costs. This is a class action in which at
`
`least one member of the Class and Subclass is a citizen of a state other than the states in which
`
`Defendants are incorporated and have their principal place of business.
`
`37.
`
`This Court has personal jurisdiction over this action because Defendants HP and
`
`NVIDIA are Delaware corporations.
`
`38.
`
`Venue is proper in this District pursuant to 28 U.S.C. §§ 1391(b)(1) because
`
`Defendants HP and NVIDIA reside within this District.
`
`- 8 -
`
`
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`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 9 of 32 PageID #: 9
`
`39.
`
`Plaintiff is informed and believes, and thereon alleges, that each and every one of
`
`the acts and omissions alleged herein were performed by, and/or are attributable to, all Defendants,
`
`each acting as agents and/or employees, and/or under the direction and control of each of the other
`
`Defendants, and that said acts and failures to act were within the course and scope of such agency,
`
`employment and/or direction and control.
`
`FACTUAL ALLEGATIONS
`
`40.
`
`In 2009, HP launched the Envy line of laptops, including a predecessor to the HP
`
`Envy 13.
`
`41.
`
`Defendant NVIDIA launched the MX150 on May 26, 2017. The MX150 succeeded
`
`the GeForce 940MX as the company’s entry-level option for discrete laptop GPUs. In January
`
`2019, NVIDIA launched the successor to the MX150, the GeForce MX250 (the “MX250”).
`
`42.
`
`On information and belief, NVIDIA has also covertly released two versions of the
`
`MX250, one performing as advertised and another that is substantially inferior, while again failing
`
`to differentiate between the two versions in marketing materials.
`
`43.
`
`In June of 2017, HP released an updated Envy 13 model and first gave consumers
`
`the option to upgrade from the computer’s integrated GPU by adding the MX150. HP updated the
`
`specifications of the Envy 13 in May 2018 but retained the optional MX150 upgrade. HP’s most
`
`recent refresh of the Envy 13, released April 2019, has phased out the MX150; they now offer
`
`customers the option to purchase an MX250 upgrade.
`
`A. Graphics Processing Units
`
`44.
`
`As discussed above, a GPU is a specialized computer chip designed to receive
`
`visual data from the CPU, process those data into images, and transmit those images to the
`
`computer’s monitor for display to the user. In contrast, a CPU is a “general purpose” processor.
`
`- 9 -
`
`
`
`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 10 of 32 PageID #: 10
`
`All else being equal, a GPU is able to process visual data faster than a CPU, meaning that a
`
`computer with a GPU is capable of producing smoother and higher quality visuals than a similar
`
`computer with no GPU.
`
`45.
`
`The MX150 has a “discrete” GPU with its own memory and processing power that
`
`is slotted into the computer motherboard (where the CPU resides) to improve the computer’s image
`
`processing capabilities. In contrast, an “integrated” GPU is integrated into the motherboard and
`
`shares memory and processing power with the CPU. Adding a discrete GPU to a machine increases
`
`overall computing resources available to the system and frees computing resources for other tasks
`
`by taking over graphics processing from the CPU.
`
`46.
`
`A fast GPU can also improve a number of facets of the user experience. A powerful
`
`GPU will reduce the time needed to process edits to photos and videos and to render animation
`
`and video, improve the web browsing experience by rendering webpages faster and helping to
`
`ensure that streaming video runs smoothly, and improve the function of the operating system, with
`
`certain elements of the graphical user interface becoming smoother and faster. Nicholas Deleon,
`
`Why Even Non-Gamers May Want a Powerful Graphics Card in Their Next Computer,
`
`ConsumerReports.org (August 29, 2018), https://www.consumerreports.org/computers/why-
`
`even-non-gamers-may-want-a-powerful-graphics-card/.
`
`47.
`
`A powerful GPU is critical to certain graphics-intensive computer uses such as
`
`running video games or virtual- or augmented-reality programs, three-dimensional modeling, and
`
`video and image processing. “A good graphics card is the most important part of a gaming PC.”
`
`Jon Martindale, The best graphics cards for 2019, DigitalTrends.com (July 15, 2019),
`
`https://www.digitaltrends.com/computing/best-graphics-cards/.
`
`- 10 -
`
`
`
`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 11 of 32 PageID #: 11
`
`48.
`
`An underpowered GPU can negatively impact the user experience by reducing
`
`render speed, display quality, and operating stability. When a GPU is insufficiently powerful to
`
`handle a graphics processing task, it can cause visual anomalies such as artifacts, flickering images,
`
`and screen stuttering. GPU output may lag, reducing the frame rate and reducing responsiveness
`
`to user input, or the GPU may even crash. The reduced framerate, stuttering, and lag caused by an
`
`underpowered GPU can render a video game or other graphics-intensive program unusable.
`
`49.
`
`The power of a GPU is directly tied to its hardware specifications. The primary
`
`element is the core clock speed, which is the operating frequency of the processing chip found on
`
`the GPU. Due to variances in GPU architecture, two GPUS with the same clock speed will not
`
`necessarily perform the same job in the same amount of time. However, assuming all else is equal,
`
`a higher clock speed GPU will always be faster than a lower clock speed GPU.
`
`50. Many GPUs are capable of “overclocking,” or increasing the baseline clock speed
`
`beyond the core clock speed. Some users choose to manually overclock their GPUs, and some
`
`newer GPUs include a “boost” feature that automatically temporarily overclocks the clock speed
`
`when additional graphics processing power is needed.
`
`51.
`
`Generally, higher clock speeds require more power and generate more heat. Power
`
`supply and heat dissipation requirements are factors that impact the design and function of a GPU
`
`and are also limitations that computer designers and OEMs consider in connection with
`
`implementing a GPU into a computer.
`
`52.
`
`Other important elements impacting GPU power include the amount of memory
`
`available to the GPU and the speed at which the GPU can access and retrieve data from that
`
`memory. The more quickly a GPU can retrieve the data, the less time it takes to perform an
`
`operation. Thus, more powerful GPUs have faster memory access.
`
`- 11 -
`
`
`
`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 12 of 32 PageID #: 12
`
`B. The Two Tiers of MX150
`
`53.
`
`Although they were uniformly marketed, there is a wide gap between the
`
`performance capabilities of the two MX150 variants.
`
`54.
`
`In March 2018, NotebookCheck.com published an article showing that there are
`
`actually “two distinct versions of the GeForce MX150 with wide performance differences and
`
`power demands.” The second version is notably slower and less demanding than the ‘standard’
`
`MX150 . . . .” Allen Ngo, NVIDIA has been sneaking in slower GeForce MX150 '1D12' variant
`
`onto
`
`some
`
`Ultrabooks,
`
`NotebookCheck.com
`
`(March
`
`19,
`
`2018),
`
`https://www.notebookcheck.net/NVIDIA-has-been-sneaking-in-slower-GeForce-MX150-1D12-
`
`variant-onto-some-Ultrabooks.289358.0.html.
`
`55.
`
`The Slowed MX150 performs substantially worse than the Standard MX150, with
`
`“a significant performance drop of about 20 to 25 percent between the two versions of the
`
`MX150.” The reduced performance of the Slowed MX150 is reflected in its power consumption:
`
`it consumers 60 percent less power (10 watts to the 25 watts of the Standard MX150). Id.
`
`56.
`
`By the most important metrics, the Slowed MX150 substantially underperforms the
`
`Standard MX150. In comparison with the Standard MX150, the core clock rate of the Slowed
`
`MX150 is 36 percent slower, the boosted clock rate is approximately 32 percent slower, and the
`
`memory access rate is approximately 17 percent slower. As a result, “[r]aw graphics performance
`
`is unsurprisingly faster” on laptops containing the Standard MX150. Id.
`
`57.
`
`In tests comparing the performance of the Class Laptops against approximately two
`
`dozen laptops containing either the Standard MX150 or the Slowed MX150, the Class Laptops
`
`were 20 to 28 percent slower than the fastest laptop (which contained the Standard MX150), and
`
`9 to 17 percent slower than the average of all laptops tested. Allen Ngo, NVIDIA has been sneaking
`
`- 12 -
`
`
`
`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 13 of 32 PageID #: 13
`
`in slower GeForce MX150 '1D12' variant onto some Ultrabooks, NotebookCheck.com (March 19,
`
`2018), https://www.notebookcheck.net/NVIDIA-has-been-sneaking-in-slower-GeForce-MX150-
`
`1D12-variant-onto-some-Ultrabooks.289358.0.html.
`
`58.
`
`59.
`
`NVIDIA designed the MX150 for use in laptop computers.
`
`In contrast with a desktop computer, a laptop computer has significantly restricted
`
`power supply and heat dissipation capacity. All else being equal, these issues grow more
`
`pronounced as a laptop shrinks in size.
`
`60. Many OEMs incorporate the MX150 into their laptops (or offer it as an optional
`
`upgrade), and there are dozens of laptop models containing the MX150. To date, the Slowed
`
`MX150 variant has been found only in ultrabook laptops, and only in the 13-inch versions
`
`(typically the smallest size) of those laptops. See id.
`
`61.
`
`On information and belief, NVIDIA designed and/or programmed the Slowed
`
`MX150 to satisfy the more stringent power supply and heat dissipation requirements of the smaller
`
`13-inch ultrabook laptop models, including the Class Laptops.
`
`62.
`
`63.
`
`Larger versions of the HP Envy use the Standard MX150.
`
`On information and belief, HP incorporated the Slowed MX150 into the smaller
`
`Class Laptops precisely because the slower version needs less power and has a lower clock speed
`
`(and therefore reduced heat output) than the Standard MX150.
`
`C. Defendants’ Marketing of the MX150 and the Class Laptops was Misleading
`and Deceptive
`
`64.
`
`Neither Defendant acknowledges in its marketing materials that there are two
`
`
`
`classes of MX150 separated by a large performance gap. Instead, both Defendants marketed the
`
`MX150 as though it would perform to the manufacturer’s specifications in all implementations,
`
`- 13 -
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`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 14 of 32 PageID #: 14
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`despite knowing that the Slowed MX150 was approximately 25 percent slower than the Standard
`
`MX150.
`
`65.
`
`HP marketed the Class Laptops as being “exceptionally powerful,” with
`
`“[i]ncredible speed,” and claimed that “the latest Intel® Core™ i processor[2] (optional NVIDIA®
`
`GeForce® MX150 graphics) combine for unbridled performance that overpowers even the most
`
`demanding
`
`tasks.” HP ENVY
`
`- 13-ad173cl
`
`(1KT13UA) Datasheet, available at
`
`https://pcb.itcs.hp.com/dc/api/spec-sheet/ww-en/18021530/pdf/1KT13UA.pdf (last accessed July
`
`20, 2019). HP promised consumers that “your computer will have the power and responsiveness
`
`to help your productivity soar. Experience amazing gaming performance, seamlessly edit and share
`
`360 video, and enjoy fantastic 4K Ultra HD entertainment.” HP ENVY - 13-ah1031tx Product
`
`Page, HP.com, available at https://store.hp.com/sg-en/default/laptops-tablets/hp-envy-13-
`
`ah1031tx-5hz24pa.html (last accessed July 20, 2019).
`
`66.
`
`NVIDIA similarly touted the speed and performance boost offered by the MX150,
`
`claiming that it offered “up to 3x superior performance-per-Watt” and approximately 33 percent
`
`better performance in various computing activities over its predecessor, the GeForce 940MX.
`
`Andrew Burnes, Introducing GeForce MX150 Laptops: Supercharged For Work and Play,
`
`NVIDIA.com (May 25, 2017), https://www.NVIDIA.com/en-us/geforce/news/NVIDIA-geforce-
`
`mx150-laptops//.
`
`67.
`
`On its website, NVIDIA claims that the “MX150 supercharges your laptop for work
`
`and play. Get up to 4X faster performance over integrated graphics for photo and video-editing
`
`applications, as well as faster, smoother gaming.” GeForce® MX150 Dedicated Graphics for
`
`Laptops, GeForce.com, available at https://www.geforce.com/hardware/notebook-gpus/geforce-
`
`mx150 (last accessed July 20, 2019).
`
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`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 15 of 32 PageID #: 15
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`68.
`
`Plaintiff and the members of the Class and Subclass relied on these representations
`
`in making the decision to purchase the Envy 13 and pay a premium for the MX150 upgrade.
`
`69.
`
`This marketing misled Plaintiff and the members of the Class and Subclass by
`
`omitting the fact that the Slowed MX150 in the HP Envy 13 would perform materially worse than
`
`advertised and render the Class Laptops unfit for their common intended uses (e.g., running video
`
`games and virtual reality software).
`
`70. While the Standard MX150 outperforms its predecessor in line with NVIDIA’s
`
`claims, the Slowed MX150 offers essentially the same performance as its GeForce 940MX.
`
`71.
`
`Similarly, because the Slowed MX150 possess approximately 25 percent less
`
`power than its standard counterpart, it does not offer “4X faster performance” over the Envy 13’s
`
`base model integrated GPU.
`
`72.
`
`Contrary to Defendants’ promises of “amazing gaming performance” and “faster,
`
`smoother gaming,” the Slowed MX150 possesses insufficient power to play many modern video
`
`games or run virtual reality software without screen stuttering and other visual interruptions that
`
`render the Class Laptops unusable for such purposes.
`
`73.
`
`The performance disparity between the two variants is not mentioned in marketing
`
`materials or packaging of the MX150 or the laptop computers containing the Slowed MX150,
`
`including the Class Laptops.
`
`74.
`
`On information and belief, NVIDIA and HP were aware of the disparity between
`
`the two MX150 variants and concealed the fact that the Slowed MX150 was inferior to the
`
`Standard MX150.
`
`75.
`
`NVIDIA differentiates between the two variants internally, with the Standard
`
`MX150 bearing internal model number N17S-G1-A1 and the Slowed MX150 bearing internal
`
`- 15 -
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`
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`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 16 of 32 PageID #: 16
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`model number or N17S-LG-A1. Nate Oh, NVIDIA Silently Rolls Out Slower, Lower TDP GeForce
`
`MX150
`
`for
`
`Ultrabooks,
`
`AnandTech.com
`
`(March
`
`23,
`
`2018)
`
`https://www.anandtech.com/show/12565/NVIDIA-silently-rolls-out-slower-mx150-for-
`
`ultrabooks (last accessed July 20, 2019).
`
`76. When queried, an MX150 operating within a laptop will identify itself, with the
`
`Standard MX150 showing a PCI ID of “10DE 1D10” and the Slowed MX150 showing a PCI ID
`
`of “10DE 1D12.” Id.
`
`77.
`
`The two variants were each certified for use with the Ubuntu operating system, with
`
`the Standard MX150 variant referred to as the GP108 and the Slowed MX150 referred to as the
`
`GP108M. Id.
`
`78.
`
`According to analysts, “the different PCI IDs and certifications suggest that this is
`
`a vendor-side variant undisclosed to consumers.” Id.
`
`79.
`
`According to a support agent of HP, “the only way to find out [which version of
`
`the MX150 is in a computer] is from the computer” as “[t]he information is not available in the
`
`product specifications.” Does MX150 in the HP Pavilion15-cs0025cl use N17S-G1-A1 or the
`
`N17S-LG-A1?,
`
`HP
`
`Community
`
`Forum
`
`(Nov.
`
`4,
`
`2018),
`
`available
`
`at
`
`https://h30434.www3.hp.com/t5/Notebook-Hardware-and-Upgrade-Questions/Does-MX150-in-
`
`the-HP-Pavilion15-cs0025cl-use-N17S-G1-A1-or/td-p/6887373 (last accessed July 20, 2019).
`
`80.
`
`Because NVIDIA does not disclose the difference between the two MX150
`
`variants, and the HP specifications for the Class Laptops do not disclose that they contain the
`
`Slowed MX150 variant, Plaintiff and the members of the Class and Subclass unknowingly
`
`purchased laptops that performed materially worse than Defendants’ marketing led them to expect.
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`- 16 -
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`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 17 of 32 PageID #: 17
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`D. Plaintiff’s Experience
`
`81.
`
`Prior to making his purchase, Plaintiff saw the HP Envy 13 promoted on
`
`Slickdeals.net, a third-party website.
`
`82.
`
`Subsequently, Plaintiff researched the Class Laptops by comparing the results of
`
`various performance benchmark tests posted to the web by third-party reviewers.
`
`83.
`
`Based on the test results and other reviews of the Class Laptops, Plaintiff believed
`
`that the MX150 was a valuable addition to the HP Envy 13, with performance comparable to the
`
`NVIDIA GeForce GTX 1050, an “upper mainstream GPU” that could play games from 2016 “in
`
`high settings a[t] the full HD resolution.” Klaus Hinium, NVIDIA GeForce GTX 1050 Mobile,
`
`notebookcheck.net, (Jan. 12, 2017), available at https://www.notebookcheck.net/NVIDIA-
`
`GeForce-GTX-1050-Notebook.178614.0.html.
`
`84.
`
`The inclusion of the MX150 was a factor in Plaintiff’s purchase, as he was looking
`
`for the smallest laptop with the highest performing GPU to be used primarily for entertainment
`
`while traveling. He intended to use the laptop for video games and virtual- and augmented-reality
`
`experiences.
`
`85.
`
`In reliance on Defendants’ misleading marketing, Plaintiff purchased an HP Envy
`
`13 with the MX150 upgrade online from a third-party retailer adorama.com on March 21, 2018.
`
`At all times relevant hereto, Plaintiff used the computer for its intended purpose.
`
`86.
`
`Nevertheless, his experience with the HP Envy 13 was marred by GPU-related
`
`issues like frame rate drops and stuttering during graphics-intensive operations like gaming,
`
`displaying high resolution “4K” content, and running virtual reality programs.
`
`87.
`
`Plaintiff was not aware of the discrepancy between the Standard MX150 and the
`
`Slowed MX150, or that his computer contained the Slowed MX150, until June 2018.
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`Case 1:21-cv-00396-UNA Document 1 Filed 03/18/21 Page 18 of 32 PageID #: 18
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`88.
`
`Plaintiff would not have purchased his Class Laptop if he had known that it
`
`contained the Slowed MX150. Instead, he would have opted for a laptop with an integrated GPU
`
`manufactured by NVIDIA’s competitor, Advanced Micro Devices.
`
`89.