Supreme Court denies Nvidia appeal, allowing cryptomining class action suit to move forward
The U.S. Supreme Court has rejected Nvidia’s appeal, which means that a class-action lawsuit against the company will move forward. This lawsuit, related to cryptocurrency mining, alleges that Nvidia misled its shareholders by not disclosing the extent of its business with cryptocurrency miners in 2018. The investors claimed that Nvidia withheld information about the impact of cryptomining on its sales, which goes against the Securities Exchange Act of 1934.
Nvidia was previously fined $5.5 million by the SEC for failing to disclose the effects of cryptocurrency on its gaming business. The class-action suit was initially dismissed by a California judge in 2021 but was reinstated by the 9th U.S. Circuit Court of Appeals. Nvidia’s request to have the suit dismissed was denied by the Supreme Court, and the case will now return to the 9th Circuit Court.
Nvidia’s legal troubles continue to mount, with recent antitrust allegations in China that could result in significant fines. As one of the leading companies in the tech industry, Nvidia’s reliance on cryptocurrency and AI markets puts it in a complex legal landscape. Stay tuned for further updates on this evolving situation.
