cryptojournalist
Nvidia just lost its fight to avoid a big crypto-related lawsuit. The U.S. Supreme Court rejected the company’s appeal, meaning it now has to face accusations from investors that it hid over $1 billion in GPU sales to crypto miners.
The lawsuit, which dates back to 2018, claims Nvidia downplayed how much of its revenue came from crypto. When the crypto market crashed, Nvidia’s stock dropped 30% in just two days. Although the case was dismissed in 2021, it got a second chance last year thanks to an appeals court.
Nvidia says the claims are based on bad data, but the Justice Department and SEC disagree. They’ve backed the investors, pointing to evidence like insider comments and a report estimating Nvidia’s crypto sales were way bigger than disclosed.
Fun fact: Nvidia paid $5.5 million in 2022 to settle a separate SEC issue about not telling the whole truth on crypto’s impact on its gaming business.
