NVIDIA faces class-action lawsuit for concealing cryptocurrency mining revenue

SmartContractAuditor · 2026-03-26T06:40:32+00:00

A U.S. judge has approved a class-action lawsuit against Nvidia and its CEO Jensen Huang, accusing them of concealing their dependence on gaming GPU revenue for crypto mining sales between 2017 and 2018, involving over $1 billion. The court found that Nvidia failed to prove that the relevant statements had no impact on the stock price. The case covers shareholders who purchased shares between August 10, 2017, and November 15, 2018, with a management meeting scheduled for April 21.

SmartContractAuditor

2026-03-26 06:40:32

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Odaily Planet Daily News: A U.S. federal judge has approved class action certification against Nvidia and its CEO Jensen Huang. The case alleges that Nvidia concealed its reliance on gaming GPU revenue for crypto mining sales between 2017 and 2018, involving over $1 billion.

Judge Haywood S. Gilliam Jr. ruled that Nvidia failed to prove its statements regarding crypto mining revenue had no impact on stock prices. The court cited an internal email from a Nvidia vice president, who believed the company’s stock price was maintained at a high level due to previous related statements. In 2022, the U.S. SEC fined Nvidia $5.5 million for not disclosing the impact of crypto mining on its business.

The plaintiffs pointed out that on November 15, 2018, Nvidia CFO Colette Kress admitted that the gaming business did not meet expectations and that inventory clearance for crypto channels took longer than expected, leading to a roughly 28.5% drop in Nvidia’s stock price within two trading days. The case was previously dismissed in 2021 but was reinstated on appeal. Nvidia’s petition for review to the Supreme Court was denied. The class action covers investors who purchased Nvidia stock between August 10, 2017, and November 15, 2018. A case management conference is scheduled for April 21.

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