A global American chipmaker lost its attempt to stop a 2018 class action lawsuit against him after the high court dismissed his appeal. Nvidia lost its legal battle to dismiss a cryptocurrency fraud case brought by shareholders after the US Supreme Court ruled it would no longer consider the chipmaker’s appeal.
Appeal denied
The Supreme Court of the United States announced that it will no longer accept the appeal requested by American Nvidia chip maker regarding his securities fraud lawsuit.
Accordingly, the Supreme Court upheld a lower court’s earlier ruling allowing the 2018 class action lawsuit to proceed.
Nvidia appealed to the high court to hear its side and avoid the cryptocurrency fraud case that was filed against it in 2018.
Reports said that the chipmaker’s shareholders sued the company for deceive investorssaying that Nvidia was not transparent about how much of its sales depended on the volatility of the crypto market.
Demand to move forward
Reports say the lower court’s decision will stand after the US Supreme Court did not take up Nvidia’s appeal, meaning the chipmaker has to face the lawsuit.
The U.S. Supreme Court said high court justices heard arguments in the case. The court’s justices decided not to rule on the underlying litigation in which the chipmaker is involved.
The high court dismissed Nvidia’s appeal regarding a lower court’s ruling, resulting in the 2018 charges moving forward; A scenario that Nvidia is trying to avoid, but with the court’s decision, it seems that the American chip company has no choice.
The high court revealed that during deliberation, several justices had reservations about the need for intervention by the United States Supreme Court in this case, reflecting on whether there was a clear legal question that the justices should decide, rather than arguing only about the facts.
The judges said they were not ideally positioned to resolve the Nvidia case because of its technical complexities.
Accused of fraud
The American chipmaker became popular in 2018 for cryptocurrency mining. That same year, Nvidia shareholders accused the company of violating the Securities Exchange Act of 1934, alleging that the chipmaker falsely downplayed the portion of its revenue growth that can be attributed to cryptocurrency-related activities in 2017 and 2018.
Shareholders argued that by omitting this essential information, Nvidia misled investors and analysts evaluating the effects of crypto mining on Nvidia’s business.
In 2021, a US federal judge dismissed the lawsuit in favor of Nvidia; however, the U.S. Court of Appeals for the Ninth Circuit. delivered the decision and revived fraud charges.
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