US Supreme Court Rejects Nvidia Appeal in Crypto Case

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The Supreme Court has declined to hear Nvidia’s plea to halt a class-action lawsuit, signaling that the case will proceed.

The lawsuit alleges that Nvidia made false statements to investors regarding its reliance on cryptocurrency mining for revenue in 2018, a controversial topic at the time.

On Wednesday, the U.S. Supreme Court dismissed Nvidia’s request to intervene, stating that the case will continue in lower courts. Nvidia argued that the 1995 Private Securities Litigation Reform Act should protect them from this type of lawsuit, but the court ruled against this notion, upholding a previous decision from an appellate court.

The lawsuit was initiated by a Swedish investment management firm after Nvidia’s stock price dropped by 28% in 2018 due to declining profitability in the cryptocurrency market.

The plaintiffs argue that Nvidia understated the impact of cryptocurrency mining on its revenue growth, which they claim violates the 1934 Securities Exchange Act.