DOJ and SEC Urge Supreme Court to Hear Investor Suit Against NVIDIA and CEO Huang Over $1.35 Billion Hidden Crypto Sales

Oct 4, 2024, 07:37 AM

NVIDIA Corporation is facing renewed legal challenges as the U.S. Department of Justice and the Securities and Exchange Commission have backed a class-action lawsuit alleging that the company concealed over $1 billion in sales to cryptocurrency miners. The lawsuit accuses NVIDIA and its CEO Jensen Huang of misleading investors about the company's reliance on revenue from crypto mining prior to the 2018 market crash, with some investors likening the alleged misconduct to "Enron-like accounting fraud." The federal agencies have filed briefs urging the U.S. Supreme Court to allow the investors' suit to proceed, emphasizing the significance of the alleged misrepresentation on the market impact. The Ninth Circuit Court of Appeals had previously revived the class action, which centers on claims that NVIDIA underreported earnings by approximately $1.35 billion due to hidden crypto-related sales. A Supreme Court battle looms as the DOJ and SEC emphasize the importance of the case. NVIDIA trades under the stock symbol $NVDA.