Nvidia Faces Class Action Over Alleged Hidden Crypto GPU Revenue

Nvidia faces class action over alleged $1B undisclosed crypto GPU revenue; investors gain approval to proceed as a group.

Nvidia faces a certified class action lawsuit over claims it failed to disclose more than $1 billion in crypto-related GPU revenue during a key period of rising demand, after a US federal judge ruled that investors may proceed together as a group as the case moves forward toward trial.

Court Allows Investor Class To Move Forward

A US District Judge approved class certification on March 25. Judge Haywood S. Gilliam Jr. issued the order in California.

He said investors can pursue their claims together in one case.

The judge also said class certification is only a procedural step. He stated it does not decide whether Nvidia made false statements.

The ruling instead focuses on whether the case can proceed collectively.

The defined class includes investors who bought Nvidia stock between August 10, 2017, and November 15, 2018.

The court reviewed whether alleged statements affected Nvidia’s stock price during that time.

The order places attention on “price impact.” This means the court will examine if disclosures or omissions influenced trading behavior and share value.

Claims Focus On Crypto Related GPU Revenue

Investors allege that Nvidia misled the market about its gaming revenue sources.

They claim the company did not fully disclose how much revenue came from cryptocurrency miners buying GPUs.

The complaint states that more than $1 billion in crypto-related GPU sales was not properly disclosed.

Shareholders argue that this information was important for understanding Nvidia’s financial position.

They also claim the truth began to emerge in 2018. After an earnings call on August 16, Nvidia’s stock fell about 4.9%.

Later, on November 15, shares dropped about 28.5% over two days after a revenue warning.

The lawsuit names Nvidia and its CEO Jensen Huang. It alleges they downplayed the role of crypto mining in driving GPU demand.

Nvidia has previously stated that it tried to estimate crypto demand but faced limits in visibility.

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Legal History And Prior Regulatory Action

In 2022, Nvidia agreed to pay a $5.5 million penalty. The company also accepted a cease-and-desist order from US regulators.

Regulators said Nvidia failed to properly disclose how crypto mining affected its gaming GPU business. The company did not admit wrongdoing as part of that settlement.

The case continued through appeals, and the US Supreme Court acted in December 2024. It declined to review a lower court decision that allowed the lawsuit to proceed.

That decision kept the case active and allowed investors to continue their claims. The latest ruling now enables them to act as a certified class.

The court will next examine evidence tied to disclosures and stock price movements. The outcome will depend on whether statements misled investors under securities law.

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