NVIDIA Faces Class Action After Court OKs $1 Billion Crypto-Mining Revenue Claims – Stock Dips 7%
The post NVIDIA Faces Class Action After Court OKs $1 Billion Crypto-Mining Revenue Claims – Stock Dips 7% appeared on BitcoinEthereumNews.com.
NVIDIA shares, NVDA, fell 7% on Thursday after a US federal judge allowed an investor lawsuit to proceed as a class action, reviving allegations that the company and CEO Jensen Huang concealed more than $1 billion in crypto-mining–related graphics card sales. NVIDIA Accused Of Hiding $1 Billion In Crypto Sales The suit, originally filed in 2018, contends that NVIDIA misled shareholders by attributing surging revenue to gaming demand while minimizing the substantial contribution from cryptocurrency miners. Plaintiffs maintain that the company funneled orders from miners through consumer GeForce gaming cards rather than reporting them under dedicated crypto product lines, inflating the appearance of organic gaming growth. According to internal testimony and documents disclosed in the court filing, independent analyses place undisclosed crypto-related GPU revenue between $1.1 billion and $1.35 billion—far exceeding what NVIDIA publicly acknowledged at the time. In court materials, one insider identified as “FE 1” explained how the tracking system monitored miner purchases; another, “FE 2,” said Huang participated in sales meetings where crypto-driven demand and its effects on revenue were discussed. Plaintiffs argue these accounts, together with internal records, show NVIDIA was aware of the scale of miner demand but publicly downplayed its significance. Class Action Certified Despite Company Defense NVIDIA has long maintained that crypto mining accounted for only a small fraction of its business and that any mining-related exposure was largely confined to dedicated Crypto SKUs within its OEM segment. NVIDIA’s defense has drawn backing from industry groups: in August 2024, the Digital Chamber of Commerce filed an amicus brief urging the US Supreme Court to overturn a Ninth Circuit decision that had partially revived the case. Regulators have previously sanctioned NVIDIA over related disclosure issues. In 2022, the Securities and Exchange Commission (SEC) fined the company $5.5 million and issued a cease-and-desist order for…
Filed under: News - @ March 27, 2026 7:22 am