SEC fined Nvidia for misrepresenting data on the impact of mining on the company's business

Graphics processor manufacturer Nvidia has settled a conflict with the U.S. Securities and Exchange Commission (SEC), which accused the company of distorting data on profits from sales of products to miners. The company agreed to pay a fine of $5.5 million.

"According to the SEC ruling, Nvidia violated the Securities Act of 1933 and the disclosure provisions of the Securities and Exchange Act of 1934. [...] The Company has not provided adequate controls and disclosure procedures. Without acknowledging or denying the SEC's findings, Nvidia agreed to the order to stop illegal actions and pay a fine of $5.5 million," the regulator said in a press release.

According to the SEC, during several quarters of fiscal year 2018, Nvidia did not disclose information that sales of graphics cards to miners were the main driver of the growth of the GPU-related business.

"In two 10-Q forms for fiscal year 2018, Nvidia reported significant revenue growth in the video game business. However, the company had information that the growth of sales in this direction is largely due to the mining of cryptocurrencies," the SEC claims.

The regulator believes that by its actions the company misled investors about the state of the business. The Commission stressed that all issuers of securities are obliged to ensure "timely, complete and accurate disclosure of information."

Recall that in March 2022, Nvidia won a case on a claim similar to the claims filed by the SEC. Investors accused the company of distorting data on profits from sales of video cards to miners.