Federal Judge Certifies Class Action Against Nvidia Over Alleged Concealment of Crypto Mining Revenue

A federal judge in California certified a class action lawsuit against Nvidia and CEO Jensen Huang on March 25, 2026, ruling that investors may proceed collectively with claims that the company concealed more than $1 billion in GPU sales tied to cryptocurrency mining between 2017 and 2018, causing significant stock price declines when the exposure was revealed.

Judge Haywood S. Gilliam Jr. found that Nvidia failed to rebut the presumption that its statements about crypto mining revenue had no effect on its stock price, citing internal emails where an Nvidia executive “expressed the view that its stock price remained high” because of those statements. The certified class covers investors who bought Nvidia stock between August 10, 2017, and November 15, 2018, with a case conference scheduled for April 21, 2026.

Allegations and Background

Concealment of Crypto-Driven Revenue

Investors first sued Nvidia in 2018, alleging the company concealed that a significant portion of its gaming GPU revenue was driven by cryptocurrency mining demand. Plaintiffs claim that Nvidia recorded most mining-related sales in its gaming segment, exposing the company to volatility tied to crypto market cycles while downplaying the scale of that demand. In 2022, the SEC fined Nvidia $5.5 million for failing to disclose the impact of cryptocurrency mining on its business.

Nvidia’s Defense

Nvidia had maintained that cryptocurrency mining accounted for only a small part of its business and that most mining-related sales were tracked separately from its core gaming division. The company also stated it had its supply chain under control and could clear excess graphics card inventory without issue.

Key Evidence and Stock Price Impact

Internal Email Cited

The court pointed to an internal email from an Nvidia vice president as particularly telling. Judge Gilliam wrote: “One of Nvidia’s own executives expressed the view that its stock price remained high because of those earlier statements, and the court cannot conclude that there was no price impact in the face of such evidence.”

November 2018 Disclosure and Stock Drop

Plaintiffs point to disclosures in 2018 that revealed Nvidia’s crypto exposure. On August 15, 2018, Nvidia cut guidance and acknowledged excess inventory, stating that crypto demand had dropped. The exposure was more fully unraveled on November 15, 2018, when Nvidia CFO Colette Kress stated that gaming was “short of expectations as post crypto channel inventory took longer than expected to sell through,” and that gaming card prices “took longer than expected to normalize” after the “sharp crypto falloff.” Following the November disclosure, Nvidia’s stock fell approximately 28.5% over the next two trading sessions.

Legal Proceedings and Class Certification

Case History

The lawsuit was initially dismissed in 2021 but was revived on appeal and survived Nvidia’s unsuccessful bid to have the U.S. Supreme Court review the case. Class certification allows investors to pursue claims as a group rather than through individual lawsuits; it does not determine Nvidia’s liability but moves the case closer to trial.

Next Steps

A case conference is scheduled for April 21, 2026, where the judge will map out next steps in the proceedings.

Frequently Asked Questions

What is the class action against Nvidia about?

The lawsuit alleges that Nvidia and CEO Jensen Huang concealed more than $1 billion in GPU sales tied to cryptocurrency mining between 2017 and 2018, recording mining-related revenue in the company’s gaming segment while downplaying the scale of crypto demand. Investors claim that when the exposure was revealed in November 2018, the stock dropped approximately 28.5%.

What evidence did the court find significant?

Judge Haywood S. Gilliam Jr. cited an internal email in which an Nvidia executive “expressed the view that its stock price remained high” because of the company’s statements about crypto-related revenue. The court found that Nvidia failed to rebut the presumption that these statements affected its stock price.

What does class certification mean for the case?

Class certification allows investors who bought Nvidia stock between August 10, 2017, and November 15, 2018, to pursue claims as a single group rather than through individual lawsuits. It does not determine whether Nvidia is liable but moves the case closer to trial, with a case conference scheduled for April 21, 2026.