A federal judge has granted class certification in a securities lawsuit against Nvidia Corporation and its CEO, Jensen Huang. The ruling allows investors who purchased Nvidia common stock between August 10, 2017, and November 15, 2018, to pursue their claims as a group.
The lawsuit, In re NVIDIA Corporation Securities Litigation, alleges that Nvidia misrepresented the impact of crypto mining demand on its gaming graphics card sales. Plaintiffs claim that mining accounted for nearly two-thirds of certain sales segments and that crypto-related revenue exceeded $1 billion during the period.
The case centers on alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Lead plaintiffs include European institutional investors Lannebo Kapitalförvaltning AB and Stichting Pensioenfonds PGB.
The lawsuit was initially dismissed in 2021 but was revived by the Ninth Circuit in 2023. Previously, in 2022, Nvidia settled charges with the SEC regarding inadequate disclosures about crypto mining, paying a penalty of $5.5 million.
Class certification is a procedural step that allows shareholders to represent their claims collectively, significantly increasing the potential financial stakes for the defendants as the case moves toward discovery.
