NVIDIA's stock fell 7% after a US judge allowed a class action lawsuit alleging the company concealed over $1 billion in crypto-mining revenue to proceed. The lawsuit claims NVIDIA misled investors by attributing increased revenue to gaming demand while downplaying the impact of cryptocurrency miners. Internal documents suggest undisclosed crypto-related GPU revenue ranged from $1.1 billion to $1.35 billion.
The lawsuit, originally filed in 2018, argues that NVIDIA funneled miner orders through consumer gaming cards, inflating perceived gaming growth. Despite NVIDIA's defense that crypto mining was a minor part of its business, the court certified the class action, citing internal emails and testimony as evidence of market impact. NVIDIA's stock is currently trading at $172, down 18% from its peak last October.
NVIDIA Faces Class Action Over Alleged $1 Billion Crypto Revenue Concealment
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