The Supreme Court has decided to let a class-action lawsuit against Nvidia proceed, accusing the tech giant of misleading investors about its reliance on cryptocurrency mining. This ruling dismisses Nvidia’s appeal and allows the case to move forward in lower courts.
Supreme Court Dismisses Nvidia’s Appeal
On Wednesday, the Supreme Court dismissed Nvidia’s appeal to halt a 2018 lawsuit brought by investors. The lawsuit alleges that Nvidia downplayed its dependence on revenue from cryptocurrency mining, which later led to a sharp drop in its stock price. A 28% stock decline occurred after cryptocurrency profitability dropped, significantly impacting Nvidia’s financial performance.
The legal proceedings initially saw the lawsuit dismissed by a district court. However, the 9th Circuit Court of Appeals later ruled that the case should proceed.
Nvidia argued the lawsuit failed to meet the standards set by the Private Securities Litigation Reform Act of 1995, which aims to reduce baseless litigation. The Supreme Court’s decision maintains the appellate court’s ruling without providing an explanation for the dismissal.
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