Nvidia and CEO Jensen Huang face certified securities-fraud lawsuit over crypto-mining disclosures
A U.S. federal judge has certified a securities-fraud class action against Nvidia and its CEO, Jensen Huang. The lawsuit centres on claims that the company failed to properly disclose revenue tied to cryptocurrency mining. Investors who bought shares between August 10, 2017, and November 15, 2018, are now part of the certified class. The case began in 2018 when shareholders accused Nvidia of hiding how much its GPU sales depended on crypto miners. The stock price had plunged 28% in two days after CFO Colette Kress publicly acknowledged the issue on November 15, 2018. This drop was far sharper than any decline seen the previous year.
The lawsuit was initially dismissed in 2021 but later reinstated after Nvidia's appeal to the U.S. Supreme Court failed. In 2022, the company paid a $5.5 million fine to the SEC for inadequate crypto-mining disclosures during fiscal 2018.
A case management conference is scheduled for April 21 to outline the next steps in the litigation. The ongoing legal battle highlights the risks of unclear revenue reporting, particularly during volatile crypto market cycles. The certified class action now moves forward, exposing Nvidia to further legal and financial risks. Shareholders involved in the case will watch closely as the litigation progresses. The outcome could set a precedent for how companies disclose revenue tied to emerging industries like cryptocurrency.
