Nvidia faces class-action lawsuit for concealing cryptocurrency mining revenue.

A U.S. federal judge has granted certification to an investor class-action lawsuit against Nvidia and its CEO, Jensen Huang. The case alleges that Nvidia concealed the extent to which its gaming GPU revenue was dependent on cryptocurrency mining sales between 2017 and 2018, amounting to over $1 billion. Judge Haywood S. Gilliam Jr. ruled that Nvidia failed to demonstrate that its statements regarding cryptocurrency mining revenue had no impact on its stock price. The court cited an internal email from an Nvidia vice president who believed the company's stock price remained high due to previous statements. In 2022, the U.S. Securities and Exchange Commission (SEC) fined Nvidia $5.5 million for failing to disclose the impact of cryptocurrency mining on its business. The plaintiffs allege that on November 15, 2018, Nvidia CFO Colette Kress acknowledged that the gaming business was underperforming and that cryptocurrency inventory clearance was taking longer than expected, causing Nvidia's stock price to fall by approximately 28.5% in the following two trading days. The case was previously dismissed in 2021, but was reinstated on appeal. Nvidia's application for review to the Supreme Court was unsuccessful. The class action lawsuit covers investors who purchased Nvidia stock between August 10, 2017 and November 15, 2018, and a case management meeting is scheduled for April 21.