SEC, DOJ
Back Class Action Against
Nvidia• Объект бренды » Бренды на n » Nvidia Over Alleged Hidden Crypto
Revenue
SEC, DOJ Back Class Action Against Nvidia• Объект бренды » Бренды на n » Nvidia Over Alleged Hidden Crypto Revenue
The DOJ and SEC have filed an amicus brief in a class action lawsuit alleging
Nvidia• Объект бренды » Бренды на n » Nvidia downplayed the demand from crypto miners on its revenue.
By Vismaya V
Oct 4, 2024 Oct 4, 2024
2 min read
Nvidia• Объект бренды » Бренды на n » Nvidia is a chips manufacturer that specializes in graphics cards. Image:
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A class action lawsuit accusing Nvidia• Объект бренды » Бренды на n » Nvidia of misleading investors about the role
of crypto mining in its 2017-2018 revenue should be allowed to proceed in the
U.S. Supreme Court• Соединённые Штаты Америки (США) » Государственное устройство США » Судебная cистема Соединенных Штатов Америки » Верховный суд США
• Государство » Государственное устройство США » Судебная cистема Соединенных Штатов Америки » Верховный суд США
• Объект организация » Организации по алфавиту » Организации на Ве » Верховный суд США, officials argued Tuesday.
U.S• Соединённые Штаты Америки (США). Solicitor General Elizabeth Prelogar and SEC senior lawyer Theodore
Weiman said the suit is detailed enough to be revived and allowed to proceed,
according to an amicus brief filing .
The amicus brief from the Department of Justice and the Securities and
Exchange Commission aims to support allegations from investors Nvidia• Объект бренды » Бренды на n » Nvidia falsely
attributed the growth to gaming demand while understating how much crypto
miners were boosting sales.
The Ninth Circuit Court of Appeals' decision to partially revive the case
came after a lower court initially dismissed it. Nvidia• Объект бренды » Бренды на n » Nvidia did not immediately
return a request for comment.
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The filing cites firsthand accounts from former Nvidia• Объект бренды » Бренды на n » Nvidia employees. One insider,
dubbed FE 1, described how Nvidia• Объект бренды » Бренды на n » Nvidia maintained a global database to track
GeForce GPU sales to crypto miners.
Another insider, FE 2, detailed CEO Jensen Huang’s direct involvement in sales
meetings, where the crypto impact on revenues was discussed.
The authorities argue Nvidia• Объект бренды » Бренды на n » Nvidia’s leadership was well aware of the crypto
influence on sales but chose to downplay it in public statements.
Expert analysis from economic consulting firm Prysm Group revealed Nvidia• Объект бренды » Бренды на n » Nvidia’s
significant crypto exposure was not used in isolation but was supported by
internal documents, former employee accounts, and a notable drop in
Nvidia• Объект бренды » Бренды на n » Nvidia's revenues following the 2018 crypto crash, per the filing.
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The DOJ and SEC say this evidence collectively supports the claim that Huang
knowingly misled investors about Nvidia• Объект бренды » Бренды на n » Nvidia’s exposure to crypto mining, meeting
the standard for "scienter," or intent to deceive.
The lawsuit claims the need for proper corporate transparency and argues the
case sets a precedent for how emerging market risks, such as cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта,
must be disclosed.
A California judge initially dismissed the case in 2021, citing insufficient
evidence, but an amended complaint led to its partial revival by the Ninth
Circuit in June.
Edited by Sebastian Sinclair
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