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DOJ and SEC Urge Supreme Court to Hear Investor Lawsuit Against Nvidia and CEO Over $1.35B Hidden Crypto Revenue

Oct 4, 2024, 08:02 AM

The U.S. Department of Justice and Securities and Exchange Commission are backing a class-action lawsuit against Nvidia Corporation, urging the U.S. Supreme Court to allow the case to proceed. The lawsuit alleges that Nvidia and its CEO Jensen Huang misled investors by concealing over $1.35 billion in revenue from GPU sales to cryptocurrency miners during 2017-2018. Investors claim that Nvidia underreported earnings and downplayed its dependence on crypto mining revenue prior to a significant market crash in 2018. The Ninth Circuit Court revived the class action, and the DOJ and SEC have filed briefs emphasizing the importance of the case. The legal battle, which began in 2018, centers on allegations that the company misrepresented its sales to crypto miners, potentially leading to a Supreme Court confrontation. Some investors have compared Nvidia's actions to 'Enron-like' accounting fraud.