A California federal judge ruled on March 25 that shareholders who purchased Nvidia stock during a defined period can pursue their claims together, moving the long-running securities case into its next stage. The lawsuit centers on Nvidia's disclosure of gaming revenue tied to the 2017-2018 cryptocurrency mining boom.
US District Judge Haywood S. Gilliam Jr. certified a class covering investors who acquired Nvidia common stock from August 10, 2017, through November 15, 2018. The ruling focused on whether the alleged statements may have affected Nvidia's share price, a key element in class certification. The order does not decide whether Nvidia or CEO Jensen Huang committed fraud, but allows investors to press the case together instead of filing separate lawsuits.
Core Allegations: Over $1 Billion in Crypto Mining GPU Sales Concealed
Investors allege that Nvidia and Huang misled the market about how much gaming revenue came from GPU sales tied to cryptocurrency miners. The complaint claims Nvidia concealed more than $1 billion in crypto-related GPU sales during that period. The case links to two market reactions in 2018: Nvidia's stock fell 4.9% after the company's August 16, 2018 earnings update, and then dropped 28.5% over two trading days after its November 15, 2018 revenue warning.
The dispute has survived several legal tests. In December 2024, the US Supreme Court dismissed Nvidia's appeal, leaving in place a lower court ruling that allowed the shareholder suit to continue. The case also follows Nvidia's 2022 settlement with the US Securities and Exchange Commission, where the company agreed to a cease-and-desist order and a $5.5 million penalty without admitting or denying the findings, for failing to properly disclose the effect of cryptomining on its gaming business.
Nvidia Prepares for Next Stage
Nvidia has continued to reject the claims. After the Supreme Court decision, a company spokesperson said Nvidia was “fully prepared to continue our defense,” emphasizing that clear standards in securities litigation matter for shareholders and the market. The court has scheduled a case conference for April 21, 2026. With class certification complete, the case now shifts from procedural battles to the evidence that investors and Nvidia will present in court.