A U S. District court let a class action against Nvidia and CEO Jensen Huang go forward. The lawsuit claims over $1 billion of crypto revenue was buried in gaming sales reports. Investors say Nvidia hid how big crypto demand was during 2017-2018 and didn't talk about it enough in public.
They argue the company misrepresented GPU sales as gaming revenue when they were actually for cryptocurrency mining. Nvidia argued its comments didn’t influence investors, but the court cited internal communications suggesting the stock price was affected. A hearing is scheduled for April 21.
Nvidia’s stock fell sharply in 2018 after revenue adjustments tied to crypto demand, dropping over 28% across two trading sessions. The SEC previously fined the company $5.5 million for not properly disclosing how crypto mining affected GPU sales.
