PANews reported on March 26 that, according to Decrypt, a U.S. federal judge has granted certification to a securities fraud class-action lawsuit against Nvidia and its CEO Jensen Huang. Investors allege that Nvidia concealed the true extent of its gaming GPU revenue related to cryptocurrency mining between 2017 and 2018, and internal company emails show that executives believed Nvidia's stock was "held high due to these statements." In November 2018, after Nvidia disclosed a decline in cryptocurrency-related sales, its stock price fell approximately 28.5% within two trading days.
In 2022, the U.S. Securities and Exchange Commission fined Nvidia $5.5 million for failing to disclose the impact of cryptocurrency mining on its business. This case, originally filed in 2018, was dismissed in 2021, but was successfully appealed. After the Supreme Court rejected Nvidia's appeal, it is now proceeding as a class-action lawsuit. The class-action lawsuit covers investors who purchased Nvidia stock between August 10, 2017, and November 15, 2018. A hearing is scheduled for April 21.
