Cesar at TeamXbox has reported that this week the Security and Exchange Commission (SEC) is suing 15 indivduals, including 11 Nvidia employees, for alleged insider trading in shares of the graphics chipmaker based on advance information that it would win a lucrative contract with Microsoft Corp. Five are being charged criminally.

From the TXB story:

The government claims that the defendants were privy to confidential information that the company had signed a $2 billion deal to supply graphics processors for the Xbox video game console developed by Microsoft Corp.

The employees, nine engineers, a human resources worker, a financial analyst, and four friends and relatives, began buying shares on March 6, the SEC charged. They're accused of purchasing the stock before the deal was announced publicly and illegally profiting from it.

The government said when the company announced the deal days before it was to be disclosed publicly, the five committed securities fraud by purchasing stocks based on insider information.

Nvidia recently announced record sales and earnings, 15% of which they say came from Xbox chips.