A U.S. district court has allowed a class action lawsuit against Nvidia and CEO Jensen Huang to proceed following investor claims that over $1 billion of the company’s crypto revenue was actually hidden in its gaming offering.
The tech giant also failed to prove that its statements on crypto mining revenue did not affect the firm’s stock price.
False Statements
A Wednesday filing suggests that during the 2017-2018 crypto boom, Nvidia misled investors by having them believe they were buying its gaming GPUs. However, the sales were actually tied to the crypto market, and once prices began falling, the firm was left with a lot of unsold inventory that caused its stock price to plummet.
Plaintiffs first sued the company in 2018, alleging that it had not disclosed around $1.3 billion of the total revenue made from these sales and that Huang had downplayed the actual demand. At the time, the CEO appeared in several interviews claiming that the firm’s crypto-related demand was “small.
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