The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have submitted a request to the U.S. Supreme Court to support a class-action lawsuit against Nvidia, claiming that the company misled investors about its sales in the cryptocurrency mining sector.
The lawsuit was filed by investors back in 2018 when they accused Nvidia of hiding more than $1 billion in revenue from the sale of graphics processors to miners. The group of investors claims that the company downplayed the significance of its sales to miners, which became evident after Nvidia’s sales plummeted following the cryptocurrency market crash in 2018.
Despite the court’s initial refusal to consider the case, the Court of Appeals reopened the process in 2022. Nvidia appealed to the Supreme Court to overturn this decision, but the Department of Justice and the SEC opposed, stating that the lawsuit has sufficient grounds to continue.
The lawsuit also includes testimony from former Nvidia employees and a report from the Bank of Canada, which claims that the company underestimated its cryptocurrency-related revenues by $1.35 billion.
Despite these accusations, Nvidia has declined to comment on the actions of the Department of Justice and the SEC.
