Nvidia Class Action Lawsuit Over Crypto Mining GPU Revenue Moves Forward

A federal court has certified a class action against Nvidia and CEO Jensen Huang, allowing investors from August 10, 2017, to November 15, 2018 to pursue claims that the company concealed over $1 billion in crypto mining-related GPU sales. Plaintiffs argue that Nvidia recorded much of this revenue within its gaming segment, misrepresenting the company’s exposure to crypto market fluctuations and affecting its stock price.

The ruling by Judge Haywood S. Gilliam Jr. noted that Nvidia failed to prove its crypto disclosures had no price impact, enabling the class action to move forward. Investors first filed the lawsuit in 2018, claiming Nvidia downplayed the size of crypto mining demand. In 2022, the SEC fined Nvidia $5.5 million for inadequate disclosure of crypto-related revenue.

Nvidia maintained that crypto mining accounted for a small portion of sales and that most mining-driven transactions were tracked separately. However, plaintiffs point to internal communications indicating that gaming GPU revenue was significantly influenced by crypto demand, creating volatility tied to digital asset cycles.

A hearing is scheduled for April 21, advancing the case toward trial, reflecting ongoing scrutiny on tech companies’ transparency regarding crypto-linked revenue and investor protection.

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