⚠️ JUDICIAL BOMB
Certified the class action against #NVIDIA for hiding the 'crypto-boom' in its income
U.S. District Judge Haywood S. Gilliam Jr. has given the green light for a lawsuit by investors against Nvidia and its CEO, #JensenHuang , to proceed as a class action. This is a major setback for the chip giant, which was trying to block the case.
The Central Accusation (2017-2018): Investors accuse Nvidia's leadership of deliberately misleading the market. They publicly claimed that income from cryptocurrency mining was "insignificant," when in fact nearly two-thirds of that income came from GeForce GPUs sold under the "Gaming" segment for mining crypto.
Scope: The class includes anyone or entity that purchased Nvidia shares between August 10, 2017, and November 15, 2018.
The "Black Monday" Test: The judge dismissed Nvidia's argument that the statements did not affect the stock price. Following the revelation in November 2018 of a "drop in crypto demand" and a forecast cut, Nvidia's shares plummeted by 28.5% in just two sessions.
The "Hole" in Revenue: Analyst reports (such as RBC Capital Markets) cited in the order estimate that Nvidia generated $1.950 billion in crypto revenue, versus the meager $602 million that the company had suggested.
Although the certification does not determine guilt, it allows thousands of investors to file claims collectively, massively increasing the financial and reputational risk for Nvidia.
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