Coinspeaker Nvidia Faces Growing Pressure in Crypto Sales Suit Backed by US Justice Department and SEC
Two federal agencies in the United States have officially backed the crypto sales suit against Nvidia in the Supreme Court. The United States Justice Department (DoJ) and the Securities and Exchange Commission (SEC) have both told the apex court to allow investors to carry on with their suit, even as the law takes its full course.
Nvidia had been involved in the legal battle since 2018 after it was alleged that the tech firm deceived the market and was not open about depending on sales to crypto miners.
Nvidia Crypto Sales Suit Should Proceed, SEC and DOJ Says
In a recent amicus brief, the agencies argued that the investors’ complaints are detailed enough and contain sufficient information to survive a district court’s dismissal. Hence, the government has told the high court to affirm the proposed class action’s revival by the US Court of Appeals for the Ninth Circuit.
From all indications, the US government has a vested interest in this suit, which is reflected in the friend of the court brief they filed on this case.
According to the SEC and DoJ, the interest borders on the fact that private suits supplement the Justice Department’s criminal prosecutions and the SEC’s enforcement actions.
Besides, US Solicitor General Elizabeth Prelogar also asked for a 10-minute opportunity to present an argument on the case. That is, on November 10, when the case will be heard. Prelogar says:
“The government therefore has a strong interest in the proper reading of one of the statutes on investor litigation, the Private Securities Litigation Reform Act.”
The Suit in View
In 2018, Nvidia investors brought up a suit against Nvidia, alleging that the firm and its CEO Jensen Huang hid how dependent they were on revenue from crypto mining. The group claimed that Nvidia and Huang hid over $1 billion in GPU sales made to crypto miners. They also added that the chipmaker underreported its large number of sales to the industry, among many other allegations.
While the case was initially dismissed, Nvidia investors went on to appeal the decision. This move was what led to the revival of the case last August after the Ninth Circuit appeals court stepped in.
Nvidia, however, would also not back down. In its defense, the firm claims that the class suit relied on a hired expert’s “invented” data about its revenue sources. Hence, it was moved to petition the Supreme Court to reverse it.
As it turns out, the DOJ and SEC are not buying Nvidia’s claims. The agencies insist that fabrications of any sort did not take place. Moreover, Nvidia investors may have also come forward with evidence relating to accounts from ex-officials of the firm and a Bank of Canada report claiming that Nvidia understated its crypto revenue by a whopping $1.35 billion.
Other amicus briefs have also been filed in support of Nvidia investors. They are from legal professors, quantitative experts, the Anti-Fraud Coalition, institutional investors, and the American Association for Justice.
next
Nvidia Faces Growing Pressure in Crypto Sales Suit Backed by US Justice Department and SEC