The U.S. Supreme Court has rejected Nvidia's appeal, upholding a lower court's ruling allowing a 2018 investor class action lawsuit to proceed. The plaintiffs accuse Nvidia of failing to adequately disclose revenue related to cryptocurrency mining from 2017 to 2018, underestimating sales by over $1 billion, which caused investors to suffer losses due to the collapse of the cryptocurrency market. (Background: Nvidia is involved in 'concealing miner purchases of GPUs' earning over $1 billion, supported by the U.S. Department of Justice and SEC in the class action against Nvidia) (Additional context: The U.S.-China chip war heats up! China initiates an antitrust investigation against Nvidia, what impact will it have on NVIDIA's performance?) The AI chip giant Nvidia faced a class action lawsuit from investors in 2018, accusing the company of failing to adequately disclose revenue related to its GPU sales linked to cryptocurrency mining during 2017 to 2018, underestimating sales by over $1 billion, leading to investor losses following the decline in the cryptocurrency market. Investors claim that Nvidia and its executives made significant false statements, downplaying the impact of the cryptocurrency market crash on their revenue growth and exaggerating their adaptability to changes. Regarding this legal dispute, Nvidia appealed to the Supreme Court in hopes of terminating this securities fraud lawsuit process. The Supreme Court rejected Nvidia's appeal. Today, the U.S. Supreme Court decided not to hear Nvidia's appeal, maintaining the lower court's decision allowing the lawsuit to continue. The plaintiffs will seek to prove their allegations that the company's disclosures to shareholders were insufficient and misleading, particularly regarding the contribution of the cryptocurrency mining business to Nvidia's overall revenue. This decision was made after the justices deliberated for four weeks, with some justices expressing skepticism about their appropriateness to comment on the case, wondering if it was more of a factual dispute rather than a legal question. Nvidia argued that the lawsuit was too vague and should not proceed to the evidence presentation and review discovery phase. In response, Nvidia spokesperson John Rizzo stated in a statement: "We had hoped the court would rule based on the nature of the case in support of the lower court's decision to dismiss this case, but we are fully prepared to continue defending our position. Maintaining consistency and predictability in securities litigation is a critical cornerstone for protecting shareholders and maintaining economic stability, and we will continue to strive to uphold these principles." In 2022, Nvidia reached a settlement with the SEC. In addition to facing investor lawsuits, in 2022, the U.S. Securities and Exchange Commission (SEC) also accused Nvidia of failing to adequately disclose the impact of cryptocurrency mining on its gaming business revenue. The SEC found that Nvidia failed to disclose the significant impact of cryptocurrency mining on its gaming GPU sales growth for two consecutive quarters in fiscal year 2018, which led investors to be unable to fully understand the true state of the company's business. To resolve these accusations, Nvidia agreed to pay a $5.5 million fine and accept an SEC cease-and-desist order. However, during the settlement process, Nvidia did not admit or deny these allegations. Nvidia faces antitrust investigations in multiple countries. While achieving commercial success, Nvidia is also facing increasingly severe legal scrutiny. Currently, EU antitrust regulators are reviewing Nvidia, focusing on whether the company engages in unfair product bundling practices and may escalate the investigation to formal proceedings. Additionally, China's State Administration for Market Regulation announced on the 9th that it has launched an investigation into Nvidia for suspected violations of antitrust laws. Related reports: Nvidia's Q3 revenue grew nearly 100%, but why did it 'plunge 5%' after hours? What are investors dissatisfied with? Key points from Nvidia's financial report at a glance. Nvidia's earnings report is coming! Its impact could be even greater than Fed interest rates or inflation data, Wall Street's forward-looking analysis summarized. Nvidia collaborates with SoftBank to launch three major projects: first AI + 5G telecommunications network, building Japan's strongest supercomputer, AI marketplace. "Court rejects Nvidia's appeal) Nvidia conceals 'miner purchases of GPUs earning over $1 billion' securities fraud case continues to be reviewed" This article was first published on BlockTempo (BlockTempo - the most influential blockchain news media).

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