According to Cointelegraph, the U.S. Supreme Court rejected Nvidia's appeal, and the company will face a class-action lawsuit accusing it of misleading investors about its sales to cryptocurrency miners.
The Supreme Court issued a line of order on December 11 without explanation, reinstating the appellate court's decision. Previously, a California district court dismissed the lawsuit in March 2021.
Nvidia shareholders accused the company of concealing over $1 billion in GPU sales and claimed that CEO Jensen Huang downplayed the sales figures related to the cryptocurrency industry.
Nvidia stated that it will continue to defend itself and emphasized that the consistent standard in securities litigation is crucial for protecting shareholders.
Shareholders pointed out that the decline of the cryptocurrency market at the end of 2018 caused Nvidia's stock price to drop nearly 30% in two days.
The Department of Justice and the Securities and Exchange Commission support the shareholders' position, stating that Nvidia's arguments are unfounded and noting evidence that the company underestimated its cryptocurrency revenue.
