Nvidia faces class action lawsuit over alleged hidden crypto mining GPU sale revenue exceeding $1 billion
In the United States, a class action lawsuit has been filed against Nvidia Corporation alleging the company concealed over $1 billion in revenue generated from the sale of graphics processing units used for cryptocurrency mining. The U.S. District Court for the Northern District of California denied the defendants’ motion to exclude certain expert opinions and approved certification of the class action.
The consolidated securities class action was initiated by plaintiffs including Lamboo Kapitalförvaltning AB and Stichting Pensioenfonds PGB, accusing Nvidia and its CEO Jensen Huang of violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The plaintiffs claim Nvidia deliberately withheld material information about sales revenues tied to crypto mining GPUs, misleading investors.
This ongoing case represents a significant financial and legal challenge for Nvidia, with plaintiffs asserting widespread harm to shareholders due to insufficient disclosure. The court’s granting of class certification means the case will proceed on behalf of all affected investors collectively.
Founded in 1993, Nvidia Corporation is a global leader in GPU manufacturing, serving markets such as gaming, professional visualization, data centres, and artificial intelligence. The lawsuit poses reputational and financial risks that could impact the company’s future business strategy.
The case highlights increasing scrutiny over transparency in financial reporting among major technology firms and could set important precedents affecting investors and the broader market. The court’s forthcoming decisions will be closely monitored.
