The U.S. Supreme Court has agreed to hear Nvidia’s appeal to dismiss a securities fraud lawsuit accusing the company of misleading investors about its sales to the cryptocurrency industry. Nvidia’s appeal follows a lower court’s decision to revive a class-action lawsuit. The suit alleges that Nvidia and its CEO, Jensen Huang, downplayed the impact of crypto-related sales on its revenue in 2017-2018. During this period, Nvidia’s chips gained popularity for crypto mining. Initially dismissed by a district judge, the 9th Circuit Court of Appeals reinstated the case, citing sufficient allegations of knowingly misleading statements. Nvidia argues that this ruling could lead to abusive litigation. A favorable decision for Nvidia could help companies secure early dismissals of shareholder lawsuits. This case centers on the protections provided under the 1995 Private Securities Litigation Reform Act.
US Supreme Court to Hear Nvidia's Bid to Dismiss Crypto-Related Lawsuit
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