Bitcoin

<a href="https://optimisus.com/news/technology/the-worlds-most-valuable-chip-company-nvidia-and-iphone-maker-foxconn-partner-to-build-ai-factories/" rel="noopener noreferrer nofollow">Nvidia</a> is currently under scrutiny as the SEC and DOJ support a revived class-action lawsuit accusing the company of misleading investors regarding its revenue from cryptocurrency mining.This lawsuit, initially filed in 2018, claims that Nvidia downplayed its reliance on crypto-related earnings during a period of high demand for GPUs in mining. The U.S. government&#39;s involvement aims to hold Nvidia accountable for allegedly misrepresenting its financial health, particularly in light of the significant drop in revenue following the 2018 crypto market crash.An amicus brief filed by Solicitor General Elizabeth Prelogar and <a href="https://optimisus.com/market/market-news/bitwises-xrp-etf-faces-roadblocks-sec-appeal-and-political-landscape/" rel="noopener noreferrer nofollow">SEC</a> lawyer Theodore Weiman argues that there is sufficient evidence to continue the case, emphasizing the importance of private lawsuits in enforcing securities regulations. The Ninth Circuit Court of Appeals had previously dismissed the lawsuit in 2021, but a recent split decision in August 2023 has revived it for further examination.Investors contend that Nvidia misrepresented its dependence on the volatile crypto market, with CEO Jensen Huang accused of making misleading public statements.They argue that the company failed to disclose the extent of its income tied to crypto mining, which became evident when revenues plummeted after the market crash.Nvidia has defended itself by claiming that investors misunderstood its revenue sources, but testimonies from former employees suggest Huang was aware of the company&#39;s heavy reliance on crypto sales.The involvement of the DOJ and SEC adds credibility to the investors&#39; claims, indicating potential dishonesty or intent that could have serious legal consequences under the Private Securities Litigation Reform Act. The agencies have even requested time for oral arguments when the Supreme Court hears the case in November.This lawsuit could have significant legal implications for Nvidia and may set a precedent for how companies report crypto-related revenue, marking it as a landmark case for investor protection in the evolving landscape of cryptocurrency.

Nvidia faces a revived class-action lawsuit backed by the SEC

Optimisus

Other articles published on Oct 5, 2024

Only 9 Days Left! BlockDAG's 50% Bonus Attracts Millions; BNB Ready to Explode, SHIB Takes a Hit!

Ripple v. SEC Lawsuit: Can the Commission Win the Appeal?

5 Best Altcoins to Watch in October for 10X Potential – $PLSX, $KAS, $XRP, $SEI, $PEPE

Institutional Interest Sparks Aptos’ Growth Amid Network Advancements

Solana’s Price Rises 1.88% Due to Market Rally

Vitalik Buterin Advocates for SuperchainERC20 Protocol Update

Join our free newsletter for daily crypto updates!