The U.S. Securities and Exchange Commission (SEC) is not only taking on Elon Musk, but now also the graphics card manufacturer NVIDIA. But why at all?
NVIDIA has to pay a fine; Image: Tom's Hardware
In the SEC document, NVIDIA violated three laws. In a nutshell, the graphics card maker failed to properly fill two quarters in fiscal 2018 (the 'relevant period' in the SEC document). That's because the graphics cards NVIDIA markets as gaming graphics cards were needed for mining cryptocurrencies.
According to the SEC, NVIDIA had information that the annual growth was due in part to certain rising cryptocurrencies. However, NVIDIA did not disclose this in the form, which is needed to give investors an indication of how the company is doing.
NVIDIA also 'failed' to maintain adequate disclosure controls and procedures. At the very least, management from the manufacturer failed to do so. Now NVIDIA must pay a fine of $5.5 million by May 20, 2022.
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