Nvidia Faces Class Action as Investors Allege $1 Billion Crypto Revenue Cover-Up!

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Nvidia investor class cleared in crypto revenue suit

Nvidia is now defending itself against a lawsuit brought by a group of investors, stemming from events during the 2017-2018 surge in cryptocurrency mining.

Summary

  • Judge certified investors as a class in Nvidia’s lawsuit over crypto-linked gaming revenue disclosures today.
  • Nvidia faces claims it misled shareholders about mining-driven GPU sales during the 2017 boom period.
  • The case now moves forward after courts let investors pursue the securities claims together formally.

As an analyst following this case, I can report that on March 25th, a federal judge in California allowed Nvidia shareholders who purchased stock during a specific timeframe to proceed with a consolidated lawsuit. This means the case is moving forward as a group action, allowing them to pursue their claims collectively.

Judge Haywood S. Gilliam Jr. has approved a class action lawsuit for investors who bought Nvidia stock between August 10, 2017, and November 15, 2018. The decision centers on whether statements made by Nvidia could have impacted its stock price, a crucial factor in allowing the lawsuit to proceed as a class action.

This ruling doesn’t determine if Nvidia or its CEO, Jensen Huang, acted fraudulently. It simply lets investors move forward with their claims as a group, rather than through individual lawsuits.

Case centers on crypto mining revenue claims

Investors are accusing Nvidia and its CEO, Huang, of misleading the public about how much of their gaming revenue actually came from GPUs purchased by cryptocurrency miners. They claim Nvidia hid over $1 billion in sales related to crypto mining during the relevant time period.

The lawsuit focuses on two drops in Nvidia’s stock price during 2018. According to court documents, the stock decreased by 4.9% following the company’s earnings report on August 16th, 2018. Later, on November 15th, 2018, a revenue warning caused the stock to fall by 28.5% over two days.

This legal battle has already withstood multiple challenges in court. In December 2024, the US Supreme Court rejected Nvidia’s attempt to stop the lawsuit, meaning shareholders can continue their case.

This situation is similar to Nvidia’s 2022 agreement with the US Securities and Exchange Commission. The SEC determined that Nvidia hadn’t adequately informed investors about how cryptocurrency mining was impacting its gaming revenue. Nvidia settled the matter with a $5.5 million fine and an agreement to stop the problematic behavior, without confirming or denying the SEC’s claims.

Nvidia prepares for the next stage

Nvidia still denies the accusations. Following the 2024 Supreme Court ruling, a company representative stated Nvidia is ready to keep fighting the claims, and emphasized the importance of clear rules for investors and the financial market.

Now that the class has been certified, the lawsuit is progressing, and the court has set a case conference for April 21, 2026. The focus will now shift from legal procedures to the actual evidence both the investors and Nvidia will bring to court.

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2026-03-26 14:32