Nvidia Corporation is at the center of a legal battle after the U.S. Department of Justice and the Securities and Exchange Commission (<a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/" rel="noopener noreferrer nofollow">SEC</a>) backed a class-action lawsuit by investors. The company is accused of misleading investors about revenues linked to cryptocurrency mining, during 2017 and 2018.
Plaintiffs allege that Nvidia failed to disclose that a significant portion of its <a href="https://ultramining.com/news/en/kaspa-takes-the-lead-in-gpu-mining-sets-sights-on-transforming-pow-landscape/" rel="noopener noreferrer nofollow">GPU</a> sales growth was driven by demand from <a href="https://ultramining.com/news/en/cryptocurrency-miners-strike-gold-with-record-13-9b-net-profit/" rel="noopener noreferrer nofollow">cryptocurrency miners</a>, leading to an artificial inflation of stock prices. After the crypto market crash in 2018, sales plummeted, and investors suffered losses exceeding $1 billion.
Nvidia representatives deny the allegations, stating that the company complied with all legal requirements. The lawsuit could set an important precedent for public companies regarding transparency in financial reporting.

Nvidia Faces Lawsuit Over Alleged Concealment of Crypto Mining Revenues

Ultramining_Eng

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