NVIDIA Accused of Hiding Cryptomining GPU Revenue, Class Action Lawsuit Moves Forward
BlockBeats News, March 26th, according to Decrypt, a U.S. federal judge has approved a group of investors to be recognized as lead plaintiffs in a class-action lawsuit, alleging that the U.S. tech giant NVIDIA and its CEO Jensen Huang concealed the extent to which the company's gaming GPU revenue relied on sales related to cryptocurrency mining between 2017 and 2018.
According to the ruling document submitted by California federal judge Haywood S. Gilliam Jr. on Wednesday, NVIDIA failed to demonstrate that its statements regarding cryptocurrency mining revenue did not impact its stock price. Investors first sued NVIDIA in 2018, accusing the company of concealing over $1 billion in GPU sales related to cryptocurrency mining and alleging that Huang downplayed the scale of this demand. In 2022, the U.S. Securities and Exchange Commission fined NVIDIA $5.5 million for failing to disclose the impact of cryptocurrency mining on its business.
NVIDIA has always stated that cryptocurrency mining represented only a small part of its business, with most mining-related sales being separated from its core gaming business for reporting purposes. The company also claimed that its supply chain was under control and could absorb excess graphics card inventory smoothly. However, the plaintiffs pointed out that a significant portion of revenue being predominantly driven by the crypto market was achieved through NVIDIA’s GeForce gaming GPUs, with much of this revenue largely attributed to its gaming segment, exposing the company to the volatility risks associated with the crypto market cycle.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
RSM Chief Economist expects the Federal Reserve to hold rates steady in October and raise by 25 basis points in December
RSM US Chief Economist Joseph Brusuelas stated: "A 'low hiring, low layoffs' U.S. job market remains our baseline view, and we expect the pace of hiring to stay sluggish going forward. The minor increase in the unemployment rate was mainly caused by statistically insignificant noise, and at present, describing the U.S. labor market as 'full employment' remains most appropriate. The weak pace of hiring, along with fluctuations in the domestic labor force data, should support members within the Federal Reserve who advocate maintaining the federal funds rate unchanged at the upcoming October meeting. The September data suggest that the risk of a second round of inflation triggered by wage increases is very small or even non-existent. In fact, employment is simply not a concern for the Fed’s policy objectives at this time. Our baseline judgement for the direction of monetary policy remains: no rate hike in October, a 25-basis-point hike in December, followed by another 25-basis-point hike in March 2027."
China’s first deepwater oil field, Liuhua Oil Field, achieves a new breakthrough
Crypto prices
More
