NVIDIA Faces Class-Action Lawsuit Over Concealed Crypto Revenue

A US federal judge has certified a class-action lawsuit against NVIDIA, a leading technology company specializing in graphics processing units (GPUs) and artificial intelligence (AI) hardware.

The lawsuit alleges that NVIDIA concealed more than $1 billion in revenue from GPU sales to cryptocurrency miners during the 2017-2018 crypto boom. According to the plaintiffs, the company improperly booked this revenue as standard gaming demand rather than acknowledging its true source.

The class period covers investors who purchased NVIDIA stock between August 10, 2017, and November 15, 2018. During this time, NVIDIA's stock price surged due to high demand for its GPUs from cryptocurrency miners. However, when the crypto market collapsed in late 2018, NVIDIA issued weak guidance, leading to a sharp decline in its stock price.

The plaintiffs claim that NVIDIA downplayed the role of cryptocurrency miners and attributed the surging revenue to consumer gaming. This, they argue, created a misleading picture of sustainable gaming growth and potentially inflated investor expectations.