The judge allows fraud lawsuit against Nvidia investors to proceed as class action
Federal Judge Haywood S. Gilliam Jr., of the Northern District of California, certified the class action in the case In re Nvidia Corporation Securities Litigation (case no. 4:18-cv-07669-HSG), paving the way for a class action on behalf of investors who purchased or acquired Nvidia common stock between August 10, 2017, and November 15, 2018.
The plaintiffs allege that Nvidia and its CEO, Jensen Huang, made materially misleading statements to investors during this period, including downplaying the revenue share of the company’s Gaming segment from cryptocurrency miners rather than consumers. The company reportedly referred to cryptocurrency-related sales as “insignificant” or “modest” in public communications, while internally tracking large-scale purchases of GeForce GPUs by miners.
According to the court order, the plaintiffs claim that Nvidia concealed over a billion dollars in cryptocurrency-related revenue throughout the period covered by the class action. When corrective disclosures were made in late 2018, Nvidia’s stock plummeted significantly – a result the plaintiffs directly attribute to the company’s prior omissions.
Judge Gilliam granted the request under Federal Rule of Civil Procedure 23(b)(3), finding that common questions of law and fact predominated within the group. He rejected Nvidia’s attempts to rebut the “price impact” presumption and exclude the plaintiffs’ damages expert. This decision is procedural and does not determine whether Nvidia committed fraud or whether the plaintiffs will prevail in the lawsuit.
A long history and a revival
This case has a lengthy history. Initially filed at the end of 2018, it was consolidated, partially dismissed, and then revived after a successful appeal to the U.S. Ninth Circuit Court of Appeals. Nvidia sought review from the U.S. Supreme Court, which denied the petition for writ of certiorari in December 2024, deeming it unworthy. The case was remanded to the district court for class certification proceedings.
A separate but related enforcement action brought by the Securities and Exchange Commission in 2022 concluded that Nvidia had not provided adequate information about the impact of cryptocurrency mining on its revenue during the same period. This case resulted in a civil penalty of 5.5 million dollars.
The certified group includes all individuals or entities who purchased or acquired Nvidia common stock during the period covered by the class action, excluding defendants, their close family members, and certain affiliated companies. The entire record, including the consolidated complaint and prior rulings, is publicly accessible on Court Listener. The court order granting certification bears docket number 288 and was filed on March 25, 2026.
As of the publication date, Nvidia has not issued a public statement regarding this decision. The company, headquartered in Santa Clara, California, remains one of the world’s largest semiconductor companies in terms of market capitalization. The progression of the proceedings will depend on pre-trial stages, including potential summary judgment motions, expert challenges, and ultimately, the trial itself, a process that could span years given the complexity of the case and the size of the certified group.
FAQ „“
- What is the lawsuit about Nvidia securities? Investors claim that Nvidia and its CEO, Jensen Huang, misled shareholders by concealing over a billion dollars in revenue from GPUs used by cryptocurrency miners between 2017 and 2018.
- What does class action certification mean in this case? It means a federal judge has authorized the class action to proceed on behalf of all eligible Nvidia shareholders for the period in question, although no substantive decision has been made yet.
- Who is covered by the certified group? Any person who bought or acquired Nvidia common stock between August 10, 2017, and November 15, 2018, may be included, subject to usual legal exclusions.
- Has Nvidia faced sanctions related to this case before? Yes – the SEC imposed a civil fine of 5.5 million dollars on Nvidia in 2022 for providing insufficient information about the impact of cryptocurrency mining on its revenue during the same period.
