Microchip company Nvidia faces class-action lawsuit as Supreme Court allows case to proceed
The Supreme Court just made a big decision about Nvidia, the microchip company. They gave the green light to a class-action lawsuit accusing Nvidia of not being honest about how much money they were making from selling chips for mining cryptocurrency. This all started in 2018 when a Swedish firm filed a lawsuit after Nvidia’s revenue dropped because the profitability of cryptocurrency had fallen. Nvidia’s stock price also took a big hit.
Nvidia tried to have the lawsuit dismissed, saying it didn’t follow the rules of a law from 1995 meant to stop bogus complaints. But the courts didn’t agree. A district judge threw out the complaint initially, but an appeals court overruled that decision. The Biden administration supported the investors, and the Supreme Court ultimately let the case move forward.
In 2022, Nvidia paid a fine of $5.5 million for not telling investors that one of its main money-makers was making chips for mining cryptocurrency. This year alone, even with China looking into them for possible anti-monopoly violations, Nvidia’s stock price has gone up by 180%.
Nvidia is a real star in the tech world, with its artificial intelligence products making it one of the biggest names in the stock market. Big-name tech companies rely on Nvidia’s chips and data centers to power their AI systems.
This lawsuit isn’t the only tech company legal battle the Supreme Court has handed down choices on. They also decided not to help Facebook parent company Meta end a class-action lawsuit related to the Cambridge Analytica scandal. So, it looks like it’s not just you and me that get caught up in court cases, big companies do too.
