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Supreme Court Agrees to Hear Nvidia’s Appeal of Cryptocurrency Sales Lawsuit
Key points
- The U.S. Supreme Court on Monday agreed to hear Nvidia’s appeal of a lower court ruling authorizing a shareholder class action lawsuit accusing the artificial intelligence (AI) chip maker of securities fraud.
- The lawsuit, filed in 2018, accuses the company, CEO Jensen Huang and CFO Colette Kress of deceiving shareholders about how much of its revenue came from those in the cryptocurrency industry.
- A San Francisco district court judge dismissed the lawsuit in 2021, but the Ninth Circuit Court of Appeals revived it last August.
The US Supreme Court agreed to hear Nvidia’s arguments on Monday (NVDA) appeal of a lower court ruling authorizing a shareholder class action lawsuit accusing the artificial intelligence (AI) chip maker of securities fraud.
The case was brought by California investors and was led by Sweden-based investment manager E. Ohman J: or Fonder AB.
Lawsuit Related to Revenue Related to Nvidia Cryptocurrency Miners
Makes society pay, Chief Executive Officer (CEO) Jensen Huang, and Chief Financial Officer (CFO) Colette Kress by misleading shareholders on how much of his income came from those of the cryptocurrency sector, supporting this Nvidia underreported sales to cryptocurrency miners by more than $1 billion.
The lawsuit was filed in 2018, and a San Francisco district court judge dismissed the suit in 2021. However, last August, the Ninth Circuit Court of Appeals revived it, ruling that “the plaintiffs’ sufficiently alleged complaint defendants Huang and Kress made materially false or misleading statements during the Class Period, leading investors and analysts to believe that NVIDIA cryptocurrencyrelated revenues were much lower than they actually were.
When reached by Investopedia on Monday, Nvidia declined to comment on the Supreme Court’s decision to hear the case.
Nvidia shares rose slightly to $132.11 as of 1 pm ET, after hitting an all-time high of $133.73 earlier in the session. Since the beginning of the year they have increased by more than 160%.