The US Supreme Court has dismissed Nvidia’s appeal, allowing a securities fraud lawsuit to proceed. The lawsuit, led by Swedish firm E. Ohman Jor Fonder AB, accuses the company of misleading investors about the impact of cryptomining on its sales.
Nvidia is accused of concealing the volatile nature of cryptocurrency market sales in its statements made in 2017 and 2018. The plaintiffs claim that these statements were false or misleading and that Nvidia intentionally or recklessly misled investors.
The Supreme Court’s dismissal leaves a lower court’s decision intact, which allowed the class action lawsuit to move forward. This is a significant win for shareholders who are seeking unspecified monetary damages to recoup lost value from their Nvidia stock holdings.
In 2022, Nvidia agreed to pay $5.5 million to US authorities to settle charges related to its failure to disclose the impact of cryptomining on its gaming business. The case has been revived after a federal judge initially dismissed it.
Deepak Gupta, representing the shareholders, described the Supreme Court’s dismissal as “a win for corporate accountability.” He criticized corporations from using legal issues to curtail class actions.
Nvidia has stated that it is prepared to continue defending itself against the allegations made by the plaintiffs.
Source: https://www.reuters.com/legal/us-supreme-court-tosses-case-involving-securities-fraud-suit-against-nvidia-2024-12-11