Court: N.D. California
Case: 4:18-cv-07669
Case Details:
Between May 10, 2017, and November 15, 2018, NVIDIA presented its flagship GeForce Gaming segment as driven by strong gamer demand. Executives repeatedly claimed crypto-mining represented only a “small” portion of revenue, limited to its OEM segment via a specialized Crypto SKU.
In reality, NVIDIA’s leadership, including CEO Jensen Huang, had direct access to internal data proving that 60–70% of GeForce sales in critical markets like China were driven by bulk purchases from crypto-miners. Huang received weekly global updates, reviewed usage data confirming non-gaming activity, and approved efforts to engage large-scale mining firms.
Despite public denials, NVIDIA’s internal sales database, regional presentations, and software analytics showed that the Gaming segment’s growth was fueled by unstable mining demand—not sustainable gaming trends. The company failed to disclose over $1.1 billion in crypto-related GeForce sales that had been falsely classified outside its Gaming segment.
On November 15, 2018, after missing earnings expectations and admitting to crypto-driven oversupply in GeForce inventory, 
NVDA crashed 28.5%, revealing the company’s exposure to crypto volatility and misleading segment reporting.
Based on these events, NVDA investors filed a claim against NVIDIA, alleging the company:
- It falsely attributed GPU sales growth to gamers while concealing crypto-miner dominance.
- It masked over $1.1 billion in volatile revenue as OEM to shield its Gaming segment.
- It misled investors to sustain valuation during the cryptocurrency boom-and-bust cycle.
Investors believe NVIDIA knowingly misrepresented the sustainability of its core business to hide material risk.
