Supreme Court to Review Nvidia Securities Fraud Case
#Nvidia #NvidiaLawsuit #CryptoLegal
Nvidia Faces Legal Challenge
The U.S. Supreme Court will review a securities fraud lawsuit against Nvidia, accused of misleading investors about its cryptocurrency involvement.
This follows a lower court's decision to revive the class action filed by shareholders in California.
Case Background
Nvidia, boosted by the AI boom, saw its chips gain popularity for cryptomining in 2018. The plaintiffs, led by Swedish firm E. Ohman J Fonder AB, allege that Nvidia and CEO Jensen Huang downplayed crypto-related revenue in 2017-2018, violating the Securities Exchange Act of 1934.
Legal Proceedings
Initially dismissed in 2021, the case was revived by the 9th U.S. Circuit Court of Appeals, which found that Huang may have knowingly made misleading statements. Nvidia has appealed to the Supreme Court, fearing "abusive and speculative litigation." Previously, Nvidia settled related charges for $5.5 million.
Supreme Court Involvement
The Supreme Court will hear Nvidia's appeal alongside a similar case involving Meta's Facebook, both slated for the next term starting in October.
