October 4, 2024 – The U.S. Securities and Exchange Commission (SEC), alongside the Department of Justice, has expressed its support for a class action lawsuit against Nvidia, urging the U.S. Supreme Court to approve the case. The lawsuit alleges that Nvidia misled investors about its cryptocurrency mining revenue, particularly concerning GPU sales to miners.
Nvidia has been embroiled in this legal battle since 2018, and the case has now escalated to the Supreme Court. In a recent opinion issued on October 2, Acting U.S. Attorney General Elizabeth Prelogar and SEC Senior Counsel Theodore Weiman argued that the lawsuit contains “sufficient details” to warrant its continuation, urging the Supreme Court to allow the case to proceed through the Court of Appeal.
The opinion highlighted the importance of private litigation, stating, “Worthy private litigation is an important complement to the criminal prosecutions and civil enforcement actions of the Department of Justice and the SEC.”
The investor groups initially filed the lawsuit in 2018, claiming Nvidia concealed over $1 billion in GPU sales related to cryptocurrency mining. They allege that CEO Jensen Huang downplayed the company’s sales in this burgeoning sector, potentially misleading investors about the true financial performance and outlook of the company.
As this case unfolds, it could have significant implications for Nvidia and the broader cryptocurrency industry, as it raises questions about transparency and corporate accountability in the rapidly evolving digital asset market.
