Judge Certifies Nvidia Class Action Over Crypto Disclosures

• Federal Judge Haywood S. Gilliam Jr. has certified a class action lawsuit against Nvidia and CEO Jensen Huang.
• The lawsuit alleges that the company concealed the extent to which cryptocurrency mining drove revenue for its GeForce gaming GPUs between 2017 and 2018.
• Investors claim Nvidia misrepresented nearly $2 billion in crypto-related revenue as gaming-related sales during the period.

Allegations of Misleading Disclosures

The legal battle centers on claims that Nvidia and its leadership intentionally downplayed the impact of the cryptocurrency market on its financial performance. Plaintiffs, led by Lannebo Kapitalförvaltning AB and Stichting Pensioenfonds PGB, argue that the company characterized crypto-related revenue as insignificant and largely limited to its OEM segment. However, they allege that nearly two-thirds of this revenue actually originated from the Gaming segment through sales of GeForce GPUs used for mining.

The class includes all individuals and entities that purchased Nvidia common stock between August 10, 2017, and November 15, 2018. The court's decision to certify the class allows these investors to pursue their claims collectively rather than individually.

Financial Impact and Market Response

The lawsuit highlights a significant discrepancy between Nvidia's public disclosures and external estimates. While the company indicated roughly $602 million in crypto-related revenue during the period, RBC Capital Markets later estimated the actual figure was closer to $1.95 billion.

This discrepancy came to a head in November 2018, when Nvidia lowered its financial guidance, citing a "sharp falloff in crypto demand." Following this disclosure, the company's stock price plummeted by 28.5% over just two trading sessions. Analysts from firms such as Morgan Stanley and Macquarie Research subsequently linked this downturn to the company's previous statements regarding its exposure to the crypto market.

Legal Context and Timeline

The case has a long procedural history, beginning when investors first filed suit in 2018. Although the case was initially dismissed in 2021, it was revived by the Ninth Circuit in 2023. Separately, Nvidia faced regulatory action in 2022 when the SEC imposed a $5.5 million fine for failing to adequately disclose the impact of crypto mining on its business operations.

While the current certification does not establish liability, it marks a major procedural victory for the plaintiffs. A case management conference is currently scheduled for April 21, 2026, as the legal process moves toward a resolution.