The company calls allegations of misleading revenue statements “speculative litigation.”
The Supreme Court agreed to hear an appeal filed by Nvidia, which claimed that a revived class action lawsuit against the company could lead to more “abusive and speculative litigation.”
When cryptocurrencies emerged into the market in 2017, Nvidia microchips became popular for crypto mining, a computer process necessary to secure cryptocurrencies like bitcoin. However, the plaintiffs in the class action lawsuit said that Nvidia intentionally downplayed the sales of their chips for crypto mining during that time, alleging that 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 revived by the 9th U.S. Circuit Court of Appeals. The circuit court found that the plaintiffs had adequately alleged that Nvidia’s CEO made “false or misleading statements and did so knowingly or recklessly,” allowing their case to proceed.
The Supreme Court will hear arguments in Nvidia’s appeal during its next term, which begins in October.
As the Lord Leads, Pray with Us…
- For the justices of the Supreme Court to receive God’s wisdom as they choose which cases to put on the fall docket.
- For discernment as the justices prepare to release the remaining decisions of the current session.
Sources: Reuters, CNBC
