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The U.S. Supreme Court allowed a lawsuit against Nvidia over underreporting $1.35 billion in crypto revenue, leading to $3.8 billion in losses. Supported by the DOJ and SEC, the case could set a precedent for transparency in crypto mining. Despite legal challenges, Nvidia’s revenue surged 190% in 2023. On December 11, 2024, the U.S. Supreme Court rejected Nvidia’s appeal in a class-action lawsuit and allowed it to move forward in lower courts. Supreme court decision The case, which was first filed in 2018, accuses Nvidia of misleading investors about the company’s reliance on cryptocurrency mining sales during a volatile period in the market. Investors claim that Nvidia failed to disclose the true extent of its crypto-related revenue, which led to substantial financial losses when the cryptocurrency market crashed in late 2018. The case centers on the allegations that Nvidia understated its crypto-related revenue by $1.35 billion, resulting in approximately $3.8 billion in losses for investors, as its stock price dropped by 30% when crypto-driven GPU sales collapsed. Nvidia’s dependence on the cryptocurrency mining boom, particularly in 2017-2018, is now being closely examined in the ongoing legal case. The Ninth Circuit Court of Appeals revived the case after it was initially dismissed in 2021. Nvidia had argued that the Lawsuit lacked to proceed the evidence. However, the Supreme Court’s ruling to dismiss Nvidia’s appeal means the case will be trialed in a federal district court in Oakland, California. Legal experts believe this decision could influence how companies report their earnings from new industries, like cryptocurrency mining, and emphasize the need for clearer financial transparency. The Lawsuit has gained backing from the U.S. Department of Justice and the Securities and Exchange Commission (SEC), which have supported the shareholders’ claims. This aligns with Nvidia’s ongoing legal challenges, which also include an ongoing antitrust…

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Filed under: News - @ December 12, 2024 10:20 pm