NVIDIA reaches settlement with SEC over ‘inadequate disclosures’
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NVIDIA reaches settlement with SEC over ‘inadequate disclosures’

The US Securities and Exchange Commission (SEC) Friday announced settled charges against NVIDIA Corporation (NVIDIA) for “inadequate disclosures concerning the impact of crypto mining on the company’s gaming business.” As a result of the SEC’s findings, “NVIDIA agreed to a cease-and-desist order and to pay a $5.5 million penalty.”

Chief of the SEC Enforcement Divisions Crypto Assets and Cyber Unit Christina Littman said that “NVIDIA’s disclosure failures deprived investors of critical information to evaluate the company’s business in a key market.” Especially in terms of emerging technology, companies “‘must ensure that their disclosures are timely, complete, and accurate.'”

NVIDIA did not admit or deny the SEC’s findings in the SEC’s filing that during their fiscal year 2018 NVIDIA violated Section 17(a)(2) and (3) of the Securities Act of 1933 and the disclosure provisions of the Securities Exchange Act of 1934.

NVIDIA has 14 days from the order’s entry to pay the SEC the $5.5M penalty, which the SEC will then transfer to the United States Treasury’s general fund.