Nvidia Faces Setback as Supreme Court Dismisses Appeal Over Crypto Mining Sales

The class-action suit, brought forth by a group of Nvidia shareholders, alleges the company concealed over $1 billion in GPU sales tied to crypto mining during the market boom leading up to 2018.

Investors claim that CEO Jensen Huang and the company downplayed the extent of sales to the cryptocurrency sector, a critical omission that came to light when the market collapsed later that year, causing Nvidia’s stock to plummet nearly 30% over two days.

Nvidia had sought the Supreme Court’s intervention, arguing that the lawsuit relied on fabricated data and unsupported claims. However, the court dismissed the appeal in a one-line order without offering further explanation.

Regulators and Evidence Bolster Shareholder Claims

In response to the Supreme Court decision, an Nvidia spokesperson expressed disappointment, stating, “We would have preferred a decision on the merits affirming the trial court’s dismissal of the case, but we are fully prepared to continue our defense.”

Nvidia emphasized its commitment to maintaining consistent standards in securities litigation, which it deems essential for economic stability and shareholder protection.

A History of Regulatory Scrutiny

This lawsuit is not Nvidia’s first brush with crypto-related controversy. In 2022, the company paid $5.5 million to settle SEC charges over its failure to adequately disclose the impact of cryptocurrency mining on its gaming business. Nvidia resolved the matter without admitting or denying the agency’s findings.