Nvidia Crypto-Mining Revenue Lawsuit Wins Class Certification

The case stems from the cryptocurrency-mining boom of 2017 and 2018. Investors allege that Nvidia and CEO Jensen Huang classified more than $1 billion in GPU sales actually driven by miners as gaming revenue, obscuring the company’s dependence on the crypto market. Nvidia shares plunged 28% over two days after the 2018 crypto winter, raising questions about whether the company’s disclosures were adequate.

The U.S. District Court for the Northern District of California recently certified the case as a class action covering investors who bought Nvidia shares from May 10, 2017, through November 14, 2018. The decision allows the investors to pursue damages collectively and moves the case toward trial. It addresses only class eligibility and does not find that Nvidia or Huang committed securities fraud; the allegation involving $1 billion in revenue has yet to be decided on its merits.