California Court Clears $1B NVIDIA Crypto Revenue Lawsuit
Key Takeaways:Court Clears Path for Investor ClaimsDispute Focuses on Crypto Mining RevenueClaims of Misleading DisclosuresCrypto Boom, Then Sudden Reversal
In 2017, Ethereum – a new cryptocurrency, exploded, putting pressure on GPU supply sources used for coin mining activities. Prices spiked and miners needed to buy a lot of high-performance chips. NVIDIA even introduced GPU lines specialized for coin mining but plaintiffs say this did not reflect adequately the real origin of demand and revenue. When crypto prices dropped in 2018, demands from miners decreased strongly. The lawsuit claims that NVIDIA was left with excess inventory and suffered declined revenue, contrast to the previous statements on stable demand and effective inventory management ability. Investors point to late-2018 disclosures as a turning point, when NVIDIA acknowledged weaker gaming performance and slower inventory clearance after the crypto downturn.About Author
