Tech Industry

Nvidia exec settles SEC earnings case

Nvidia's former chief financial officer reached a $671,695 settlement with the U.S. Securities and Exchange Commission on Thursday, in a case that alleged that the graphics chipmaker intentionally omitted $3.3 million in supplier expenses from its books.

Christine B. Hoberg, 48, agreed to settle the civil complaint without admitting or denying the allegations. The SEC alleged that Nvidia received $3.3 million in cost reduction credits from a supplier in early 2000 in exchange for repaying the supplier the same amount later that year with purchase prices that were artificially higher than normal. The Santa Clara, Calif.-based chipmaker recorded the cost reductions of that transaction, but not the liability, according to the SEC. As a result, Nvidia overstated its gross profit and income for the quarter ended April 30, 2000, the regulatory body charged.