Nvidia Faces Class-Action Lawsuit Over Alleged Cryptocurrency Mining Revenue Concealment

Nvidia, a leading AI technology company, is facing a class-action lawsuit alleging that it concealed over $1 billion in cryptocurrency mining revenue between 2017 and 2018. The lawsuit claims that the company's gaming graphics card sales were heavily influenced by demand from miners during this period, which was not adequately disclosed to investors.

A U.S. federal judge has approved the class-action lawsuit, covering investors who purchased Nvidia stock between August 10, 2017, and November 15, 2018. The plaintiffs argue that Nvidia generated significant revenue from cryptocurrency mining through its GeForce gaming graphics cards but attributed most of it to its 'gaming business,' thereby downplaying the risks to investors.

Nvidia had previously maintained that cryptocurrency mining accounted for only a small portion of its business, with gaming revenue primarily derived from gamers. However, internal emails and financial reports suggest that the company was aware of the significant impact of cryptocurrency demand on its sales.