Nvidia Class Action Advances Over Crypto Mining Revenue Disclosures
A federal judge in California has allowed a group of investors to proceed collectively in a securities lawsuit against Nvidia, pushing the case closer to a potential trial over how the company reported crypto-related GPU sales during the 2017–2018 boom.
In a March 25 ruling, Judge Haywood S. Gilliam Jr. approved class certification for investors who purchased Nvidia shares between Aug. 10, 2017, and Nov. 15, 2018. The decision enables shareholders to pursue their claims as a unified group, though it does not determine whether the company or its leadership engaged in wrongdoing.
The lawsuit centers on allegations that Nvidia and CEO Jensen Huang failed to accurately disclose how much of its gaming division revenue was driven by demand from cryptocurrency miners purchasing GPUs. Investors argue that this lack of clarity distorted the company’s financial picture at the height of the crypto mining surge.
The court’s analysis focused significantly on whether the alleged misstatements had a measurable effect on Nvidia’s stock price. Plaintiffs point to two key moments in 2018: an August earnings call that coincided with a roughly 4.9% decline in shares, and a November revenue warning that triggered a sharper drop of about 28.5% over two trading sessions.
The case builds on earlier regulatory action. In 2022, Nvidia agreed to pay $5.5 million and comply with a cease-and-desist order tied to insufficient disclosures about crypto mining’s impact on its gaming business. More recently, in December 2024, the US Supreme Court allowed a lower court decision to stand, clearing the way for the shareholder lawsuit to continue.
Investors claim the company understated more than $1 billion in revenue linked to crypto mining, masking the extent to which its gaming segment relied on that volatile demand source.
Nvidia has pushed back on the allegations, maintaining that its long-term strategy has delivered strong returns for shareholders and stating it will defend itself in court.
As part of the latest ruling, the judge also permitted the plaintiffs to use an “out-of-pocket” damages model along with an event study designed to link stock price movements to key disclosures.
The next step in the case is a scheduled conference on April 21, 2026, at 2:00 p.m. Pacific Time, where both sides are expected to outline how the litigation will proceed.