Nvidia Faces Certified Class Action Lawsuit Over Alleged Undisclosed Crypto Mining Revenue

Mar 26, 2026

Federal Judge Haywood S. Gilliam Jr. certified a class action lawsuit against Nvidia and CEO Jensen Huang alleging the chipmaker concealed over $1 billion in crypto mining-related GPU sales between August 2017 and November 2018. Investors claim Nvidia recorded significant crypto-driven revenue through its GeForce gaming segment without proper disclosure, exposing the company to volatility tied to crypto market cycles. The SEC previously fined Nvidia $5.5 million in 2022 for disclosure failures related to crypto mining impact. Nvidia stock fell approximately 28.5% over two trading sessions in November 2018 after the company acknowledged excess inventory and declining crypto demand, with the case now advancing toward potential trial following a failed Supreme Court dismissal bid.

Class Action Certification and Legal Proceedings

▪The Nvidia case was dismissed in 2021, then revived on appeal, and survived Nvidia's failed Supreme Court bid.
▪A case conference for the Nvidia class action is scheduled for April 21.
▪Investors first sued Nvidia in 2018 alleging the company concealed more than $1 billion in GPU sales tied to crypto mining.
▪The certified class covers investors who bought Nvidia stock between August 10, 2017, and November 15, 2018.
▪Judge Haywood S. Gilliam Jr. filed an order on Wednesday in California federal court regarding the Nvidia class action case.
▪A federal judge certified a class of investors alleging that Nvidia and CEO Jensen Huang concealed the extent to which Nvidia's gaming GPU revenues depended on sales tied to crypto mining between 2017 and 2018.
▪Nvidia was unable to show that its statements about crypto mining revenue had no effect on its stock price.

Alleged Concealment of Crypto Mining Revenue

▪Nvidia cut guidance in August 2018, acknowledged excess inventory, and said crypto demand had dropped.
▪Investors alleged that Jensen Huang downplayed the scale of crypto mining demand for Nvidia GPUs.
▪The SEC fined Nvidia $5.5 million in 2022 for failing to disclose the impact of crypto mining on its business.
▪Nvidia CFO Colette Kress said on November 15, 2018, that gaming was short of expectations as post crypto channel inventory took longer than expected to sell through.
▪Nvidia maintained that crypto mining accounted for only a small part of its business and that most mining-related sales were tracked separately from its core gaming division.
▪An Nvidia vice president expressed in an internal email the view that Nvidia's stock price remained high because of earlier statements about crypto mining revenue.
▪Nvidia CFO Colette Kress said gaming card prices took longer than expected to normalize after the sharp crypto falloff.

Market Impact and Investor Disclosure Implications

▪Renz Chong stated that when the market eventually corrects, the first thing investors and regulators will examine is what management knew, when they knew it, and what they told the public.
▪Nvidia stock fell approximately 28.5% over two trading sessions following the November 15, 2018 disclosure about crypto exposure.
▪Judge Gilliam Jr. stated the court cannot conclude there was no price impact on Nvidia stock in the face of evidence from an internal executive email.

Perspective of Nvidia

▪Nvidia maintained that crypto mining accounted for only a small part of its business.

Perspective of Plaintiff investors

▪Investors alleged that Jensen Huang downplayed the scale of crypto mining demand for Nvidia GPUs.

Perspective of Sovrun CEO Renz Chong

▪Renz Chong stated that when the market eventually corrects, the first thing investors and regulators will examine is what management knew, when they knew it, and what they told the public.