TechFlow News, March 26: According to Decrypt, U.S. federal judge Haywood S. Gilliam Jr. has granted approval for a class-action lawsuit against NVIDIA and its CEO Jensen Huang. Plaintiffs allege that the company and its CEO concealed the extent to which gaming GPU revenue depended on cryptocurrency mining demand between 2017 and 2018.
The court ruled that NVIDIA failed to demonstrate that its statements regarding cryptocurrency mining-related revenue had no impact on its stock price, thereby allowing the lawsuit to proceed as a class action. The plaintiffs contend that NVIDIA attributed over $1 billion in mining-related GPU sales to its gaming business segment, deliberately downplaying the scale of cryptocurrency mining demand and causing investors to underestimate the company’s exposure to cyclical volatility in the cryptocurrency market.
Previously, in 2022, the U.S. Securities and Exchange Commission (SEC) fined NVIDIA $5.5 million for violations related to disclosure requirements.
