Nvidia Defeats Lawsuit Over Alleged Misrepresentation of Revenue From Crypto Miners

A federal district court in California dismissed claims that Nvidia misled investors about revenue from cryptocurrency mining.

• Some Nvidia investors alleged the graphics processing unit company's statements were false or misleading regarding how much revenue growth was due to sales related to cryptocurrency mining.
• The three-year-old lawsuit claimed Nvidia misrepresented $1 billion in revenue from sales to cryptocurrency miners.
• But the federal district court ruled insufficient proof was offered to show the company misled investors. According to court documents, the court said the "allegations do not plausibly suggest that Defendants acted with at least deliberate or conscious recklessness."
• The court dismissed the case given the insufficient proof even after investors were previously given opportunity to add additional evidence of misleading or false statements.
• "Plaintiffs largely reiterate their previous arguments," the court said. "The Court’s previous ruling – that it is not sufficient to allege that gaming was Defendants’ core business – stands."
• In its Q4 earnings, Nvidia attributed 2%-6% of its quarterly revenue to cryptocurrency miners, per CoinDesk reporting, which it called a "relatively small portion" of its total $5 billion in revenue.