The Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have filed a petition with the Supreme Court, supporting a class action lawsuit against Nvidia.
The reason? Nvidia is accused of “covering up” more than $1 billion in revenue from selling GPUs to crypto miners in 2017-2018, while publicly announcing profits from the gaming segment.
The incident was discovered during the 2018 downtrend when Nvidia’s revenue suddenly plummeted. Although the lawsuit was initially dismissed, the DOJ and SEC believe there is now enough evidence to proceed, including “expose” testimony from former Nvidia employees and a “valuable” report from the Bank of Canada showing that the company had personally reduced crypto revenue by $1.35 billion!
If this lawsuit is approved by the Supreme Court, it will be a "painful blow" not only for Nvidia but also for many other companies that are hiding financial information.