Nvidia faces a class action lawsuit for concealing cryptocurrency mining revenue

According to market news, a U.S. federal judge has approved the certification of a class action lawsuit against Nvidia and its CEO Jensen Huang for securities fraud.

Investors allege that Nvidia concealed the true scale of revenue related to cryptocurrency mining in its gaming GPU sales between 2017 and 2018. Internal emails show that executives believed Nvidia's stock "remained high due to related statements." In November 2018, after Nvidia disclosed a decline in cryptocurrency-related sales, the stock price fell by about 28.5% within two trading days.

The U.S. Securities and Exchange Commission had previously fined Nvidia $5.5 million in 2022 for failing to disclose the impact of cryptocurrency mining on its business. This case was initially filed in 2018, successfully appealed after being dismissed in 2021, and is now proceeding as a class action after the Supreme Court rejected Nvidia's appeal. The class action covers investors who purchased Nvidia stock from August 10, 2017, to November 15, 2018, with a case conference scheduled for April 21.