NVIDIA Faces Class Action After Court OKs $1 Billion Crypto-Mining Revenue Claims – Stock Dips 7%

AI Briefing

• – NVIDIA shares plummet 7% after a US federal judge allows a class action lawsuit to proceed, alleging the company concealed $1 billion in crypto-mining revenue. The plaintiffs claim NVIDIA misled shareholders by attributing gaming demand to crypto-mining sales. NVIDIA's CEO Jensen Huang allegedly discussed crypto-driven demand with sales meetings.
• – A US federal judge certified the class action lawsuit, citing NVIDIA's failure to demonstrate that its statements had no impact on the company's stock price.
• – The lawsuit claims NVIDIA funneled orders from miners through gaming cards, inflating the appearance of organic gaming growth, and that the company concealed $1.1-1.35 billion in crypto-related revenue.