US backs lawsuit alleging $NVDA misled investors on crypto mining revenue.

by
Sharing is Caring!

Nvidia ($NVDA) and Super Micro Computer ($SMCI) are entangled in high-stakes lawsuits accusing their executives of misleading investors on key financial details, with serious implications for their reputations and market standing.

The Nvidia lawsuit, revived by the Ninth Circuit with support from the DOJ and SEC, targets CEO Jensen Huang’s alleged underreporting of the company’s reliance on crypto mining revenue. Investors argue they suffered losses following the 2018 cryptocurrency crash due to Nvidia’s inadequate disclosure. This case, set for a Supreme Court hearing on November 13, 2024, has drawn government backing, emphasizing that Nvidia may have misrepresented critical revenue streams.

See also  What do you mean we are not in a recession? Demand is down so we are raising prices to increase revenue.

Super Micro Computer, meanwhile, is also under fire with multiple lawsuits, including a new shareholder case filed on November 6, 2024, following a Hindenburg Research report from August. CEO Charles Liang and other executives are accused of misleading investors by improperly recognizing revenue, bypassing internal controls, and concealing related-party transactions. Hindenburg’s report, citing “glaring accounting red flags,” alleges a fraudulent revenue scheme and potential trade control violations. This lawsuit is pending in the US District Court for the Northern District of California.

These cases underscore a growing demand for corporate transparency in financial reporting. With Nvidia’s case before the Supreme Court and SMCI facing potential delisting, the outcomes could set significant precedents for executive accountability and disclosure standards across publicly traded companies.

See also  1 BILLION leveraged crypto positions liquidated as #Bitcoin surged to a record $89,000 yesterday.

Sources:


Views: 81

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.