US Government Backs Lawsuit Alleging Nvidia Misled Investors About Cryptocurrency Mining Revenue
The SEC and DOJ argued that cryptocurrency mining demand played a much larger role in Nvidia's success than suggested.
The US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have backed a class-action lawsuit against Nvidia, accusing the company of misleading investors.
According to court documents, both agencies filed an amicus brief backing Nvidia investors who allege the company misrepresented the impact of cryptocurrency mining on its 2017/2018 revenue.
The DOJ and SEC have urged the Supreme Court to revive the previously dismissed case. Attorney General Elizabeth Prelogar and SEC lead counsel Theodore Weiman argued that the lawsuit contains sufficient evidence to proceed.
Authorities have also requested 10 minutes to present oral arguments when the case goes to court in November.
According to the lawsuit, investors claim that Nvidia and its CEO, Jensen Huang, misled them about the companyâs reliance on revenue from sales related to cryptocurrency mining.
They argue that Nvidiaâs leaders downplayed the companyâs reliance on cryptocurrency mining despite being fully aware of it. The companyâs vulnerability became apparent when its revenue declined after the 2018 cryptocurrency market crash.
In response, Nvidia countered that investors relied on fabricated data about its revenue sources. However, investors maintain that its data, drawn from multiple reliable sources, indicates securities fraud.
#Nvidia's #BNBChainMemecoins #EIGENonBinance #BinanceSquareFamily #HotTrends $BTC
