Nvidia to Face Class Action Lawsuit Over Alleged Crypto Mining Revenue Gaps
A federal judge has certified a class action by investors claiming Nvidia and CEO Jensen Huang concealed how much of Nvidia’s gaming GPU revenue depended on crypto mining between 2017 and 2018. Plaintiffs allege Nvidia hid over $1 billion in crypto mining GPU sales by recording much of this revenue in its gaming segment, exposing the company to crypto market volatility. Nvidia argued crypto mining was a small part of its business and tracked separately, but the court found evidence, including internal emails, suggesting company statements may have kept its stock price high. Disclosures in 2018 revealed Nvidia’s actual exposure, leading to a sharp stock drop following the company’s admission of excess inventory and a decline in crypto demand. The class includes all who bought Nvidia stock from August 10, 2017 to November 15, 2018. Class certification allows investors to proceed as a group, although it does not determine liability. The case, previously dismissed and revived on appeal, advances toward trial with a conference scheduled for April 21.
