Nvidia Faces Lawsuit Over Alleged Misleading Statements on Crypto Mining Revenue

A US federal judge has ruled that investors who purchased Nvidia stock between August 2017 and November 2018 can proceed with their lawsuit against the company.

The lawsuit alleges that Nvidia and its CEO Jensen Huang misled shareholders about the gaming revenue generated during this period, specifically failing to disclose the significant portion of revenue that came from selling graphics processing units (GPUs) to crypto miners.

Nvidia had agreed to pay a $5.5 million penalty to the Securities and Exchange Commission in 2022 for inadequate disclosures related to the impact of crypto mining on its gaming business.