Nvidia Faces Certified Class Action Over Alleged Crypto-Related Disclosure Failures

A federal judge has cleared the way for a certified class action against Nvidia in a lawsuit over the company's alleged failure to disclose its reliance on crypto mining demand between 2017 and 2018. The ruling allows investors who bought Nvidia stock during this period to pursue their claims together, potentially leading to a significant recovery.

The case alleges that Nvidia concealed more than $1 billion in GPU sales tied to crypto mining and downplayed the scale of that demand. In 2022, the SEC fined Nvidia $5.5 million for failing to disclose adequately how crypto mining affected its business.

Nvidia had maintained that crypto mining accounted for only a small part of its overall business, but plaintiffs argue that a significant share of crypto-driven revenue flowed through its GeForce gaming GPUs. The court highlighted an internal email from a Nvidia vice president as particularly telling, as it expressed the view that stock price remained high due to earlier public statements about crypto.