The company describes the allegations of misleading sales statements as “speculative litigation.”
The Supreme Court has granted an appeal filed by Nvidia, which had argued that another class action lawsuit against the company could lead to even more “abusive and speculative litigation.”
When cryptocurrencies came onto the scene in 2017, Nvidia microchips became popular for crypto mining, a computer process needed to secure cryptocurrencies like Bitcoin. However, plaintiffs in the class action lawsuit said Nvidia intentionally downplayed sales of its chips for crypto mining during that time, claiming the company made false and misleading statements to hide the source of its revenue growth from both investors and the Securities and Exchange Commission.
The lawsuit was initially dismissed in 2021, but was reinstated by the 9th U.S. Circuit Court of Appeals. The court found that the plaintiffs had sufficiently demonstrated that Nvidia’s CEO “made false or misleading statements and did so knowingly or negligently” so that their case could proceed.
The Supreme Court will hear arguments in Nvidia’s appeal during its next term, which begins in October.
Pray with us as the Lord shows you…
- So that the Supreme Court justices can receive God’s wisdom as they decide which cases to place on the fall docket.
- For your review as the judges prepare to announce the remaining decisions of the current session.
Sources: Reuters, CNBC
