Nvidia's Class-Action Lawsuit Over Hidden Crypto Mining GPU Sales Approved by US Court

Recently, a US federal judge approved certifying a group of investors as class-action plaintiffs, accusing Nvidia and its CEO Jensen Huang of hiding the extent to which the company's gaming GPU revenue relied on crypto mining sales between 2017 and 2018. This ruling means the class-action lawsuit will formally proceed.

Investors claim Nvidia concealed over $1 billion in crypto mining-related GPU sales and that Huang downplayed the scale of this demand. In 2022, the U.S. Securities and Exchange Commission (SEC) fined Nvidia $5.5 million for failing to disclose the impact of crypto mining on its business.

Nvidia previously stated that crypto mining accounted for a small part of its business, with most mining-related sales counted separately from its core gaming business. However, plaintiffs argue that a large number of GeForce gaming GPUs were purchased by miners, and the revenue was included in the gaming segment, exposing the company to volatility risks linked to crypto market cycles.