{"id":1940,"date":"2026-03-30T14:01:06","date_gmt":"2026-03-30T14:01:06","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=1940"},"modified":"2026-03-30T14:01:06","modified_gmt":"2026-03-30T14:01:06","slug":"court-allows-nvidia-class-action-over-undisclosed-crypto-revenue","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/03\/30\/court-allows-nvidia-class-action-over-undisclosed-crypto-revenue\/","title":{"rendered":"Court Allows Nvidia Class Action Over Undisclosed Crypto Revenue"},"content":{"rendered":"\n
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The SEC previously fined Nvidia 5.5 million dollars for failing to disclose the impact of crypto mining on its revenue, which has become a key element in the lawsuit.<\/p>\n\n\n\n

A United States district court has ruled that a class action lawsuit against Nvidia and its CEO Jensen Huang can move forward. Investors claim that more than 1 billion dollars in crypto related revenue was concealed within the company\u2019s gaming segment.<\/p>\n\n\n\n

The company was also unable to demonstrate that its statements regarding crypto mining revenue had no effect on its stock price.<\/p>\n\n\n\n

Allegations of Misleading Statements<\/strong><\/p>\n\n\n\n

A recent court filing indicates that during the 2017 to 2018 crypto boom, Nvidia misled investors into believing they were purchasing gaming GPUs driven by typical consumer demand. In reality, a significant portion of those sales was linked to the crypto mining market. When crypto prices declined, the company was left with excess inventory, which contributed to a sharp drop in its stock value.<\/p>\n\n\n\n

The lawsuit, first filed in 2018, alleges that Nvidia failed to disclose approximately 1.3 billion dollars in revenue generated from these sales. It also claims that Jensen Huang understated the level of crypto related demand. At the time, he described crypto demand as small and maintained that gaming remained the company\u2019s core business, with crypto providing only a minor boost.<\/p>\n\n\n\n

The company also introduced a dedicated crypto mining chip, with its sales reported under a separate mining category. Plaintiffs argue that this move was intended to reinforce the perception that Nvidia\u2019s gaming and mining operations were distinct.<\/p>\n\n\n\n

According to court documents, Nvidia argued that its statements were not intended to influence investors and therefore did not impact the stock price. However, Judge Gilliam Jr. rejected this position, citing internal communication from a company executive as evidence that those statements may have supported the stock\u2019s valuation.<\/p>\n\n\n\n

The judge noted that internal views suggested the company\u2019s stock price remained elevated because of earlier statements, making it difficult to conclude that there was no impact. As a result, the court allowed the case to proceed and set a hearing date for April 21.<\/p>\n\n\n\n

Nvidia Stock Declines During Market Downturn<\/strong><\/p>\n\n\n\n

In 2018, conditions shifted as the crypto market weakened. By August, Nvidia announced reduced revenue expectations and acknowledged that miners had been purchasing its gaming GPUs. The company also reported a 36 percent increase in inventory levels.<\/p>\n\n\n\n

Following this announcement, Nvidia\u2019s stock price dropped by 4.9 percent. The company later issued another revenue forecast cut, attributing it to declining crypto demand.<\/p>\n\n\n\n

During the same period, Chief Financial Officer Colette Kress stated that gaming revenue had fallen short of expectations due to unsold inventory. This led to a sharp decline in the company\u2019s stock, which fell by 28.5 percent over the next two trading sessions.<\/p>\n\n\n\n

Earlier, the United States Securities and Exchange Commission fined Nvidia 5.5 million dollars for failing to properly disclose the extent to which crypto mining contributed to its overall revenue. Regulators stated that the company should have informed investors that a significant share of GPU demand came from crypto miners.#crypto#cryptonews https:\/\/coinsignals.net<\/a> https:\/\/t.me\/coinsignalpublic<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The SEC previously fined Nvidia 5.5 million dollars for failing to disclose the impact of crypto mining on its revenue, which has become a key element...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1940","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=1940"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1940\/revisions"}],"predecessor-version":[{"id":1942,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1940\/revisions\/1942"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=1940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=1940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=1940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}