Today, Nvidia is due in the US Supreme Court to contest a fraud lawsuit that accuses the company of misleading investors.
Nvidia and its CEO, Jensen Huang, are accused of violating the Securities Exchange Act by making statements in 2017 and 2018 that misleadingly downplayed the extent to which Nvidia’s revenue growth was driven by crypto-related purchases.
Starting in 2017, the rising prices of certain cryptocurrencies made Nvidia’s chips increasingly sought after for crypto mining. This process involves performing complex mathematical calculations to secure cryptocurrencies like Bitcoin and Ether. By the end of 2018, during a fall in crypto profitability, Nvidia’s revenue dropped well below projections, resulting in the price of company stocks plummeting.
The plaintiffs accusing Nvidia’s executives and top officials seek an unspecified amount in damages. The charge to Nvidia is that of concealing the impact of crypto mining on its business.
In 2022, Nvidia agreed to pay $5.5 million to settle the charges; however, the company did not admit to or deny the federal regulators’ charges.
Pre-trial today, Nvidia’s stock stands at a gain of 2%.
By CEO NA Editorial Staff
