Nvidia Faces Securities Fraud Class Action Over Crypto Mining Revenue Disclosure

A U.S. federal judge has approved the certification of a securities fraud class action lawsuit against Nvidia and its CEO, Jensen Huang. According to PANews, investors allege that Nvidia concealed the true extent of its gaming GPU revenue related to cryptocurrency mining between 2017 and 2018. Internal company emails reportedly indicated that executives believed Nvidia's stock remained high due to related statements. In November 2018, Nvidia disclosed a decline in crypto-related sales, leading to a stock price drop of approximately 28.5% over two trading days. The U.S. Securities and Exchange Commission fined Nvidia $5.5 million in 2022 for failing to disclose the impact of crypto mining on its business. The case was initially filed in 2018, dismissed in 2021, and later successfully appealed. After the Supreme Court rejected Nvidia's appeal, the lawsuit is proceeding as a class action. It covers investors who purchased Nvidia stock between August 10, 2017, and November 15, 2018. A case meeting is scheduled for April 21.