NVIDIA Faces Class Action Lawsuit Over Alleged Crypto Revenue Concealment

A class action lawsuit against NVIDIA has been allowed to proceed by a US federal court. The suit alleges that the company failed to disclose over $1 billion in crypto mining revenue during the period from August 10, 2017, to November 15, 2018.

The plaintiffs claim that NVIDIA recorded large mining revenue under its gaming division, creating a false picture of steady gaming demand. They argue that this practice masked the volatility of mining demand and distorted revenue trends.

According to court filings, NVIDIA generated about $1.7 billion from crypto mining GPU sales during the class period, with roughly $1.13 billion allegedly lacking clear disclosure. The plaintiffs assert that miners drove much of the gaming segment's reported growth, accounting for over 65% of crypto demand targeting GeForce gaming GPUs.

The court rejected NVIDIA's argument that its disclosures had no price impact, stating that the company failed to disprove investor claims at this stage. A hearing is scheduled for April 21 to address arguments on liability and damages.