Judge Allows Class Action Against NVIDIA Over Alleged Hidden Crypto Mining Revenue
NVDA has more than doubled off its 52-week low of $86.62.
Summary
A U.S. federal court has allowed a class-action lawsuit against NVIDIA and CEO Jensen Huang to proceed. The lawsuit alleges the company hid over $1 billion in crypto mining-related GPU sales revenue between August 2017 and November 2018, misrepresenting it as gaming revenue. This development follows a prior $5.5 million SEC fine in 2022 for similar disclosure failures regarding crypto mining's impact on gaming revenue. While the alleged amount is from a past period and relatively small compared to NVIDIA's current market capitalization, the progression of a class-action lawsuit poses a material legal and financial risk, potentially leading to significant legal costs, compensation to investors, and reputational damage. A hearing is scheduled for April 21, which will be the next key date for this case, and investors will monitor the proceedings for further developments.
At the time of this announcement, NVDA was trading at $176.90 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.3T. The 52-week trading range was $86.62 to $212.19. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Coinpedia.