The SEC and DOJ have filed a lawsuit against Nvidia, accusing it of failing to properly disclose revenues from crypto mining.
Essence of the Lawsuit
The SEC claims that Nvidia failed to disclose a large portion of its revenue from GPU sales related to crypto mining. The agency argues that this lack of transparency prevents investors from accurately assessing the company's financial health.
Historical Background
The lawsuit dates back to 2018, when investors accused Nvidia of downplaying its reliance on revenues from cryptocurrency. Despite initial dismissal in 2021, the case was revived in 2023.
Current Developments
On October 2, SEC lawyers and the U.S. Solicitor General filed a petition claiming sufficient evidence to pursue the case. The DOJ's involvement strengthens the lawsuit, and both agencies plan to present in the Supreme Court hearing in November.
The ongoing proceedings could substantially impact Nvidia’s reputation and alter disclosure practices across the tech sector.