Nvidia Faces Class Action Over Alleged Crypto Mining Revenue Concealment

TLDR: A federal court certified a class action covering Nvidia investors between August 10, 2017, and November 15, 2018. Plaintiffs allege Nvidia hid over $1 billion in crypto-related GPU sales within its gaming revenue segment. Nvidia’s stock dropped nearly 28.5% in two sessions after CFO Colette Kress disclosed crypto inventory issues. The SEC previously fined Nvidia $5.5 million in 2022 for failing to disclose crypto mining’s effect on revenue. Nvidia now faces a certified class action lawsuit tied to alleged crypto mining revenue concealment. A U.S. federal court ruled Wednesday that investors may pursue the case as a group. The lawsuit covers shareholders who purchased Nvidia stock between August 10, 2017, and November 15, 2018. Plaintiffs allege the company hid over $1 billion in crypto-linked GPU sales within its gaming segment. A case conference is now set for April 21. Court Rules Against Nvidia on Price Impact Judge Haywood S. Gilliam Jr. of California federal court issued the ruling on Wednesday. He found that Nvidia failed to prove its disclosures had no effect on its stock price. An internal email from an Nvidia vice president played a key role in the decision. The executive reportedly expressed the view that the stock remained high because of earlier statements. The court stated it could not conclude there was “no price impact in the face of such evidence.” This ruling allows the certified class of investors to move the case forward together. Nvidia had previously argued that crypto mining accounted for only a small part of its business. The company also claimed most mining-related sales were tracked separately from its gaming division. A U.S. federal court ruled that a lawsuit against Nvidia and CEO Jensen Huang over alleged concealment of crypto mining-related GPU revenue can proceed as a class action, covering investors between Aug. 10, 2017 and Nov. 15, 2018; plaintiffs claim Nvidia hid over $1 billion in… pic.twitter.com/fIv50rmP9J — Wu Blockch...