Judge Certifies NVIDIA Class-Action Over Crypto Revenue

A federal judge in California has certified a class-action lawsuit against NVIDIA Corporation and its CEO, Jensen Huang, allowing investors to collectively pursue claims that the company misled shareholders about revenue from cryptocurrency mining during the 2017-2018 boom. The ruling, issued on March 25 by U.S. District Judge Haywood S. Gilliam Jr. in the Northern District of California, covers investors who purchased NVIDIA common stock between August 10, 2017, and November 15, 2018.

The plaintiffs allege that NVIDIA concealed more than $1 billion in sales of graphics processing units, or GPUs, driven by cryptocurrency miners, by recording much of the revenue under its gaming segment without clear disclosure. Court filings estimate that NVIDIA generated approximately $1.7 billion from crypto-related GPU sales during the class period, with about $1.13 billion lacking explicit mention in public statements. Investors contend that over 65 percent of this demand involved GeForce gaming GPUs, which fueled roughly 83 percent of the company's overall GPU growth at the time. They argue that this omission created a misleading impression of stable demand from traditional gaming sources,...