A California federal judge has certified an investor class in a securities lawsuit against Nvidia. The class-action suit alleges the chipmaker and CEO Jensen Huang misled shareholders about how much of its gaming revenue during the 2017-2018 crypto boom came from GPU sales to cryptocurrency miners. The ruling is a procedural step allowing investors to pursue claims as a group, but does not determine fraud.
A California federal judge has certified an investor class in a securities lawsuit accusing Nvidia and CEO Jensen Huang of misleading shareholders. The case centers on how much of the company’s gaming revenue during the 2017-2018 crypto mining boom came from GPU sales to cryptocurrency miners.
US District Judge Haywood S. Gilliam Jr. issued the order on March 25, stressing it is a procedural step. The certification does not resolve whether Nvidia‘s statements were fraudulent.
The class includes investors who bought Nvidia stock between Aug. 10, 2017, and Nov. 15, 2018. The order focuses heavily on whether the alleged misstatements affected the company’s share price.
Shareholders claim the truth emerged after an August 2018 earnings call and a November 2018 revenue warning. The stock fell roughly 28.5% over two days following the November disclosure.
Investors first sued in 2018, alleging Nvidia downplayed more than $1 billion in crypto-related sales. The company agreed to a $5.5 million penalty with regulators over related disclosure issues in 2022.
A spokesperson for Nvidia stated that investors from that timeframe “have done incredibly well, as our corporate strategy unfolded as we consistently predicted.” The company added it would “address the complaint in court.”
The judge also declined to exclude key evidence from the plaintiffs’ damages model. A case conference is scheduled for April 21, 2026.
